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BOE Raises Rates to Highest Since 2009 and Warns of Bigger Moves

  • Inflation forecast raised again to slightly above 11%
  • Policy makers balance cost pressures with risk of recession
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BOE Hikes Tempered by Growth Challlenges: CIBC's Stretch
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The Bank of England raised interest rates for a fifth straight meeting and sent its strongest signal yet that it’s prepared to unleash larger moves if needed to tame inflation.

The nine-member Monetary Policy Committee voted 6-3 to increase the benchmark lending rate by 25 basis points to 1.25%. A minority of officials maintained their push for a move of double that size.