News in Review Wednesday 11th May 2022
Interest rate rises were big news last week on home shores, across the pond and in Australia, as central banks acted in an effort to curb inflation. The Monetary Policy Committee voted by a 6-3 majority to increase Bank Rate by 0.25 percentage points to 1%, with further tightening expected in the coming months. Interestingly, the three members in the minority favoured increasing Bank Rate by 0.5 percentage points to 1.25%. This is the fourth consecutive increase since December last year; at 1%, the rate has reached its highest level in 13 years.