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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
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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

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

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