Bank of England rate hike is largest in over 30 years
MPC forecasts prolonged downturn and says it does not foresee rates rising to 5.25%
The Bank of England’s monetary policy committee voted to raise rates by 75 basis points today (November 3), and said the UK was in recession.
The move was the UK’s largest hike for more than 30 years, and took the bank rate to 3%, but the MPC said it did not anticipate raising rates to the level predicted by financial markets.
“Further increases in Bank Rate may be required for a sustainable return of inflation to target, albeit to a peak lower than priced into financial markets,” the MPC said
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