Business Standard

Bank of England raises interest rates again, sees inflation shock fading

BoE announces quarter-point rate hike to 4.25%; MPC says it expects inflation to fall faster

A pedestrian shelters under a Union Flag umbrella in front of the Bank of England, in London. Photo: Reuters

Reuters London
The Bank of England raised interest rates by a further quarter of a percentage point on Thursday and said it expected the surge in British inflation to cool faster than before, despite a surprise jump in price growth last month.

Sounding more upbeat about the outlook for the country's slow economy, the BoE's nine rate-setters voted 7-2 in favour of a 25 basis-point increase in Bank Rate to 4.25%, as expected in a Reuters poll of economists.

That was its 11th consecutive increase in borrowing costs, beginning in December 2021, although it was the smallest rise since June.

Monetary Policy Committee members Swati

Disclaimer: No Business Standard Journalist was involved in creation of this content

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Mar 23 2023 | 6:47 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on are available only to BS Premium subscribers.

Register to