Persistence of inflation convinced Bank of England policymakers to act more aggressively and signaled more tightening even as higher interest rates hit mortgage holders hard and the surprise move raised market expectations regarding the level at which the UK bank rate would peak.
The Monetary Policy Committee, led by Governor Andrew Bailey, decided to increase the bank rate by a bigger-than-expected 50 basis points on Thursday. Markets had forecast only a quarter point hike.
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Business News
May 08, 2026 15:50 ET Manufacturing and services sector survey results and labor market data from main economies were the highlight on the economics news front this week. Factory orders and jobs report dominated the news flow in the U.S. Similarly, industrial production data from German garnered attention in Europe. In Asia, purchasing managers’ survey results from China and the central bank decision from Australia were in focus.