The Bank of England has lifted its target interest rate another 0.5% to 3.5%, and remains hawkish in its guidance despite the economy “expected to be in a recession for a prolonged period”.
Below is the summary statement, with my emphasis added:
The Bank of England’s Monetary Policy Committee (MPC) sets monetary policy to meet the 2% inflation target, and in a way that helps to sustain growth and employment. At its meeting ending on 14 December 2022, the MPC voted by a majority of 6-3 to increase Bank Rate by 0.5 percentage points, to 3.5%. Two members preferred to maintain Bank Rate at 3%, and one member preferred to increase Bank Rate by 0.75 percentage points, to 3.75%.
