The Bank of England (BoE) hikes interest rates by 0.25 percent

As predicted, the Bank of England hiked the Bank Rate by 25 basis points to 5.25%.
The Bank of England agreed to boost the primary interest rate (Bank Rate) by 25 basis points. Bank Rate climbs to 5.25%, the highest level since March 2008, with this 14th stage in the current rate hike process.

The Bank of England remains confident that inflation will reduce considerably in the medium term, to 5% by the end of the year. Inflation is unlikely to reach the bank's 2% objective until mid-2025.

The Bank of England considers monetary policy restrictive after around 5 percentage points of rate rises. This suggests that the BoE believes the rate peak is not far away, especially given that the BoE's latest predictions show less growth than the May projection and a worsening of the labor market beginning in mid-2024. 

We anticipate another and last rate rise in September, with the rate peak expected to be 5.50%.