The Bank of England’s Monetary Policy Committee (MPC) sets monetary policy to meet the 2% inflation target, and in a way that helps to sustain growth and employment. At its meeting ending on 22 March 2023, the MPC voted by a majority of 7–2 to increase Bank Rate by 0.25 percentage points, to 4.25%. Two members preferred to maintain Bank Rate at 4%. Global growth is expected to be stronger than projected in the February Monetary Policy Report, and core consumer price inflation in advanced economies has remained elevated. Wholesale gas futures and oil prices have fallen materially. There have been large and volatile ... (full story)

The Bank of England has raised interest rates by a quarter of a percentage point to 4.25% in response to higher than expected UK inflation. The Bank’s monetary policy committee (MPC) voted to increase the base rate for an 11th consecutive time, judging that higher borrowing costs are still required to tackle inflation despite gathering storm clouds for the economy. UK rates are now at the highest level since October 2008, just as the global economy was in the grips of the financial crisis. The development comes after the UK’s annual inflation rate unexpectedly rose in February to 10.4% from 10.1% in January, fuelled ... (full story)