Bank of England hikes rates by 25 basis points
By Michele Maatouk
Date: Thursday 23 Mar 2023
(Sharecast News) - The Bank of England hiked interest rates by 25 basis points on Thursday to 4.25%, as expected, in the face of rising inflation.
The Monetary Policy Committee voted 7-2 for the rate increase, which was the 11th in a row by the Bank.
Data released on Wednesday by the Office for National Statistics showed that consumer price inflation rose to 10.4% in the year to February from 10.1% in January. Analysts had been expecting a decline to 9.9%.
John Leiper, chief investment officer at Titan Asset Management, said: "No surprise today from the Bank of England with a 25bps rate hike, already priced-in, following the bumper inflation data yesterday. We think there is more to come to combat inflation, even as the bank grapples with financial stability concerns and rising recessionary headwinds that could tip the economy into contractionary territory later this year."
Earlier, the Swiss National Bank hiked its key policy rate for the fourth meeting in a row, by 50 basis points to 1.50%, in line with consensus expectations. The Bank said it was looking to tackle "the renewed increase in inflationary pressure" and that further rate hikes could not be ruled out to ensure price stability in the medium term.
Meanwhile, on Wednesday, the US Federal Reserve increased rates 25 basis points despite the recent turmoil in the banking sector.
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