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6/16, 1:00 PM (Source: TeleTrader)
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BoE increases interest rate by 25 bps to 1.25%

Bank of England (BoE) announced on Thursday that it is raising its bank rate by 25 basis points to 1.25% in a 6-3 majority vote, with dissenting members in favor of a 50 bps hike. The fifth consecutive interest rate increase put it at its highest point in 13 years.

The BoE's Monetary Policy Committee noted the United Kingdom's gross domestic product is expected to fall by 0.3% in the second quarter as a whole. Inflation is expected to be over 9% during the next few months and to rise to slightly above 11% in October. The bank vowed to "take the actions necessary to return inflation to the 2% target sustainably in the medium term" as well as to "be particularly alert to indications of more persistent inflationary pressures, and if necessary act forcefully in response."

Baha Breaking News (BBN) / DJ