The Bank of England increased its policy rate by 50 basis points to 5 percent. Thus, the UK has increased interest rates for 13 consecutive meetings.
The Bank of England (BOE) has announced its interest rate decision.
The BOE increased its policy rate by 50 basis points from 4.5 percent to 5 percent and strengthened its fight against inflation, which was at its highest level since the 1980s.
The expectation was for a 25 basis point rate hike.
The resolution was approved by the nine-member Monetary Policy Committee by 7 votes to 2. The 50 basis point increase was recorded as the fastest rate increase since February.
The 5 percent policy rate marks the highest rate in 15 years.
A half-point rate hike was priced in the markets with only a 40 percent probability.
The most recently announced May inflation data exceeded expectations for the fourth month in a row, increasing the more aggressive interest rate hike pressure on the Bank of England (BOE).