Breaking: BOE hikes policy rate by 50 bps to 4% as expected

Following its February policy meeting, the Bank of England (BoE) announced that it raised the policy rate by 50 basis points (bps) to 4% as expected.

Economists suggest this move could be the last big rate increase for Britain’s central bank, which has approved 10 consecutive hikes since a post-pandemic surge in the world economy and Russia’s war in Ukraine drove inflation to 40-year highs.

The US Federal Reserve has already begun tapering its response, boosting its key rate by just a quarter-point on Wednesday. The European Central Bank, meanwhile, is expected to go big again, with a half-point hike Thursday.

to be updated…