Daily Management Review

Bank of England raises base rate to 4.5 percent


According to a news release from the regulator, the Bank of England increased its benchmark interest rate by 25 basis points in May, from 4.25% to 4.5%, and is ready to raise it even further in the event of increasing inflationary pressures.

Katie Chan
Katie Chan
The central bank's choice was in line with what analysts surveyed by DailyFx had predicted.

By a vote of seven to two, the Monetary Policy Committee decided to increase the bank rate by 0.25 percentage point, to 4.5 percent. According to the report, two members preferred to keep the bank rate at 4.25 percent.

Since October 2008, when it was 4.5%, the rate has never been higher than it is right now. The regulator increased the rate by twice, first in February and once in March, each time by 25 basis points.

source: ft.com