Breaking: BOE hikes policy rate by 50 bps to 4% as expected
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Following its February policy meeting, the Bank of England (BoE) announced that it raised the policy rate by 50 basis points (bps) to 4% as expected. Two policymakers, Tenreyro and Dhingra, vote to keep the policy rate on hold at 3.5%.
Follow our live coverage of the BoE policy announcements and the market reaction.
With the initial market reaction, GBP/USD edged higher and was last seen posting small daily losses at 1.2374.
“If there were to be evidence of more persistent pressures, then further tightening of monetary policy would be required.”
“Past increases in bank rate expected to have increasing impact on economy in coming quarters.”
“BOE sees recession with just under 1% peak-to trough fall in GDP over 5 quarters vs November forecast of around 3% fall over 8 quarters.”
“MPCc continues to judge inflation risks are skewed significantly to the upside.”
“Inflation to fall to 3.92% by Q4 2023 (November forecast: 5.2%), based on market interest rates and modal forecast.”
“Tight labour market and higher-than-expected domestic price and wage pressures point to more persistent inflation.”
Developing story…
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