Bank of England raises interest rate


03/24/2023

According to a news release from the authority, the Bank of England increased its benchmark interest rate by 25 basis points from 4% to 4.25% at the conclusion of its March meeting, and is prepared to raise it further if inflationary pressures increase.



Alex Guibord
The central bank's choice was in line with what analysts polled by DailyFx expected.

The current rate is the highest it has been since October 2008, when it was 4.5%. The rate was increased three times: by 50 basis points in February, by 50 in December, and by 75 in November.

According to the Bank of England's report, "the Monetary Policy Committee unanimously decided to raise the rate by 0.25 percentage points, to 4.25%." While two committee members preferred to maintain the rate at 4%, seven of them voted in favor of the increase.

In order to reach a sustainable inflation goal of 2% over the medium term, the Bank of England's monetary policy committee will modify the central bank's policy rate "as necessary."

source: dailyfx.com