BOE Raises Key Interest Rate by a Half-Percentage Point
February 02 2023 - 07:34AM
Dow Jones News
By Paul Hannon
The Bank of England raised its key interest rate Thursday for a
10th straight policy meeting, but signaled it may soon pause that
series as the annual rate of inflation falls and the economy
The U.K.'s central bank raised its Bank rate to 4% from
The BOE's move follows the Federal Reserve's Wednesday decision
to raise its key rate by a quarter of a percentage point, a step
down from its half-point rise in December
The Fed signaled it was on track to do so again at its meeting
next month while officials consider whether and when to pause
increases late this spring.
In contrast, the European Central Bank is expected to match the
BOE in repeating the half-point rise it announced in December when
its latest policy decision is published later Thursday.
The BOE said further rate rises are possible, but only if
inflation threatens to be high for longer than it currently expects
it to be. The central bank had previously set a lower bar for
further rate rises, but also warned that there was a "large" risk
that a tight jobs market and big pay rises would keep inflation
higher for longer than it anticipates.
"If there were to be evidence of more persistent pressures, then
further tightening would be required," the BOE said.
The central bank dropped its previously stated commitment to
respond "forcefully" to "more persistent inflationary pressures,"
an indication that its next move is unlikely to be larger than a
Write to Paul Hannon at firstname.lastname@example.org
(END) Dow Jones Newswires
February 02, 2023 07:19 ET (12:19 GMT)
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