Bank of England raises policy rate
Tightening comes amid inflation surge and just after BoE completes asset purchases
The Bank of England raised its policy rate today (December 16), in its first monetary tightening since before the Covid-19 pandemic.
Policy-makers voted 8–1 to raise the rate by 15 basis points, bringing it to 0.25%. Silvana Tenreyro was the only member of the monetary policy committee to dissent, voting to keep rates unchanged. Most policy-makers stressed the importance of tackling high inflation, which is now running more than three percentage points above target.
The BoE’s rate move
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