Bank of England pushes rates 25bps to 5.25% in 14th successive hike

In a six-to-three vote, the central bank's monetary policy committee (MPC) today (3 August) settled on 25bps - a 14th consecutive hike. Two in the MPC voted for a 50bps hike while one voted for no change. Expectations for the peak of interest rates reached 6.5% last month after record wage growth was recorded. However, they have since fallen back following to the drop in inflation throughout June, now sitting at about 6%, which is predicted to be reached later this year or early in 2024. The MPC report noted that the 7.7% increase in pay growth was "materially above expectations" that...