The Bank of England (BOE) increased the policy rate by 75 basis points to 3 percent to rein in inflation at its 40-year peak.
The Bank of England increased its policy rate by 75 basis points from 2.25% to 3%. Thus, the bank made the biggest interest rate increase in 33 years.
The expectation was to increase the interest rate by 75 basis points.
The monetary policy decision was taken by 7 votes to 2. In the statement, it was stated that ‘the peak interest rate will probably be lower than the markets implied’ regarding future rate hikes .
Thus, the bank continued to increase interest rates in the 8th month.
Inflation had risen to 10.1% in September.