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Interest rates rise for the 14th consecutive time to 5.25%

Martin Sartorius Principle Economist, CBI

The Bank of England’s Monetary Policy Committee (MPC) voted 6-3 to raise the Bank Rate by 25 basis points in August (to 5.25%), in line with market expectations. This marked the 14th consecutive increase in interest rates.

04 Aug 2023, 6 min read

The Bank of England’s Monetary Policy Committee (MPC) voted 6-3 to raise the Bank Rate by 25 basis points in August (to 5.25%), in line with market expectations. This marked the 14th consecutive increase in interest rates. The majority voting bloc in the MPC noted that key indicators of domestic price pressures, particularly wage growth, remained elevated, which necessitated a further tightening of monetary policy to bring inflation back down to target.

The MPC’s latest forward guidance kept open the possibility of further rate hikes

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