Bank of England Raises Interest Rate to 5.25%
Posted on 08/04/2023
The Bank of England’s Monetary Policy Committee, raised interest rates by 25 basis points to 5.25%. This is the Bank of England’s 14th consecutive rate hike. The central bank said the U.K. labor market “remains tight but there are some indications that it is loosening.”
The committee decided 6 to 3 in its meeting Wednesday to raise rates by 25 basis points. Two members of the committee looked to raise rates by 50 basis points, and one member wanted to maintain the rate at 5%. Inflation in the U.K. remains stubbornly high.
The European Central Bank (ECB) raised interest rates in July 2023, completing a full year of rate increases. The ECB’s main rate currently stands at 3.75%.