A 0.5% rate hike combined with forecasts of falling inflation saw questions intensify over how high rates will go and whether they will then have to be cut again.
A 0.5% rate hike combined with forecasts of falling inflation saw questions intensify over how high rates will go and whether they will then have to be cut again.
The Bank of England hiked interest rates by 0.5% saying the country's tight labor market and stronger-than-expected domestic price and wage pressures indicated inflation was a greater threat than higher borrowing costs.
<h2>Monetary Policy Summary, December 2022</h2>
<p>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 14 December 2022, the MPC voted by a majority of 6-3 to increase Bank Rate by 0.5 percentage points, to 3.5%. Two members preferred to maintain Bank Rate at 3%, and one member preferred to increase Bank Rate by 0.75 percentage points, to 3.75%.</p>