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00:00The Bank of England may have added to the history books, but its dramatic hiking chapter isn't just over yet. Britain's benchmark interest rate is now at 4 percent. That's up 50 basis points to the highest since 2008, when the financial crisis was taking hold. Now, with the quickest string of hikes in more than three decades under its belt, is the beauty finally done? Sure. Threadneedle Street is sounding more hopeful, but Governor Andrew Bailey and his committee aren't quite ready to relax. The risk to inflation remains skewed to the upside, with officials warning that further tightening would come with any evidence of more persistent pressure. But there are hints that the tightening would come at a slower pace. Officials have stripped the word forcefully from their guidance that describes future hikes in the bank's biggest hawk. Catherine Mann seems less hawkish now. She voted for a 50 basis point hike, this time after choosing 75 in November. Once gloomy forecasts have now also somewhat brightened, Bailey said the first signs are emerging that inflation has turned a corner and growth is now expected to come in stronger. Meanwhile, markets are convinced that cuts are pending. Betting on 25 basis points worth of cuts before the end of this year. And UK households, they're increasingly turning to floating rate mortgages. It doesn't mean the UK is all in the clear. A recession is still coming, albeit shorter and shallower. To be specific, the BNP now sees a 1 percent drop in GDP through the next five quarters and it doesn't think the economy will recover to pre pandemic levels until at least 2026. So as Bailey puts it, the UK is in unchartered territory and it's too soon to declare victory.

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Bank of England Signals Rate Hikes Aren't Over

Britain's benchmark interest rate is now at its highest level since 2008. Will it go higher? Bloomberg's Dani Burger reports. (Source: Bloomberg)