Central Banks

BOE Brings Peak UK Interest Rate Into View With Hike to 4%

Bailey says inflation risks tilted ‘significantly’ to upside
Policy makers signal tightening cycle may approaching its end

WATCH: The BOE raised interest rates a half point as seven of the central bank’s nine-member MPC endorsed the hike to 4%.Source: Bloomberg

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By Andrew Atkinson and Philip Aldrick

February 2, 2023 at 12:00 PM UTC

Updated on

February 2, 2023 at 3:13 PM UTC

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The Bank of England signaled the fastest pace of interest-rate hikes in three decades may be drawing to a close after it raised its benchmark lending rate a half point.

Policy makers led by Governor Andrew Bailey voted 7-2 to raise the benchmark lending rate to 4%, the highest since 2008. The majority said strong pay growth and an ongoing shortage of workers were driving price pressures in the economy.