The Bank of England raised its benchmark rate by a half percentage point on Thursday citing stronger-than-expected wage growth but softened its stance on future tightening as inflation is set to return to the target in medium term.
The Monetary Policy Committee voted 7-2 to raise the bank rate by 50 basis points to 4.00 percent, the highest since 2008.
Swati Dhingra and Silvana Tenreyro voted to maintain status quo. They argued that the effects of the past increases were still to come through and the current rate setting would reduce inflation to well below the target in the medium-term.
Subscribe to continue reading the article.
This article is part of our premium content offering.Subscribe with a RTTNews subscription.
Subscribe NowAlready subscribed? Sign in
by Renju Jaya
For comments and feedback: contact editorial@rttnews.com