The Bank of England decided to raise the base interest rate to 1.75% from 1.25% per annum, as most analysts and economists expected. The rate was raised following the results of the sixth meeting in a row, and the pace of its increase was a record since 1995.
The decision to raise the rate by 50 basis points (bp) was supported by eight of the nine members of the Monetary Policy Committee (MPC), and only 1 member voted in favor of raising it by the usual 25 bp.
The Bank of England decided to tighten monetary policy against the backdrop of persistently high inflation.
Consumer prices in the UK in June 2022 jumped by 9.4% in annual terms, official statistics showed. The indicator updated a 40-year high for the third month in a row and accelerated compared to 9.1% in May .
Inflationary pressures in the UK and Europe have increased significantly since the release of the monetary policy report in May and the previous meeting of the Bank of England, the regulator said in a statement.