BOE Raises Key Rate to 4.5%, Saying Further Hikes May Be Needed
- UK central bank raises key rate quarter point as expected
- ‘Repeated surprises’ have added to price pressure, panel says
The Bank of England in the City of London, UK, on May 11.
Photographer: Hollie Adams/BloombergThis article is for subscribers only.
The Bank of England raised its benchmark lending rate to the highest level since 2008, with Governor Andrew Bailey saying further increases may be needed to “stay the course” in the fight to slow inflation.
The UK central bank lifted its key rate a quarter point as expected to 4.5%, with two of the nine-member Monetary Policy Committee voting for no change. The majority of the panel said “repeated surprises” pointing to the resilience of the economy have added to price pressures and required action.