Breaking: BoE hikes interest rates by 25 bps to 1.25%, as was widely anticipated
|The Bank of England (BoE) announced its monetary policy decision this Thursday and hiked rates for the fifth consecutive time to curb soaring inflation. The nine-member Monetary Policy Committee (MPC) voted 6-3 for the 25 bps hike in the bank rate to 1.25%, with the minority - Catherine Mann, Jonathan Haskel and Michael Saunders - voting for a 50 bps increase. The UK benchmark rate is now at its highest since January 2009.
In the accompanying monetary policy statement, the BoE noted that the path for interest rates had risen materially since the May meeting, even though there had been relatively little news since then. The BoE further said that it was ready to act "forcefully" to stamp out dangers posed by an inflation rate heading above 11%.
Market Reaction
The latest monetary policy update by the UK central bank, however, failed to impress the GBP bulls. In fact, the GBP/USD pair dropped back below the 1.2100 round-figure mark after the announcement and was last seen hovering near the daily low.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.