BOE Hikes Key Rate by 25 Basis Points to 5.25%

The Bank of England's decision to hike interest rates by 25 basis points was largely expected by markets and economists, despite some speculation of a 50 basis point increase. The decision led to a slight weakening of sterling. Criticism arose regarding the Bank's reactive approach, focusing on past data rather than future projections. The decision also saw a three-way voting split, with some members favoring a larger hike.

What was the consensus view on the Bank of England's interest rate decision?

• An increase from 5% to 5.25%

• A decrease from 5% to 4.75%

• An increase from 5% to 5.50%

• No change in the interest rate

What factor led to the expectation of a 25 basis point hike?

• A strong economic growth forecast

• A cooler than expected June inflation report

• A decrease in unemployment rates

• A higher than expected inflation report

What criticism is directed at the Bank of England's decision-making process?

• They are not considering inflation rates

• They are ignoring market expectations

• They are too focused on future projections

• They are reacting to past events rather than future outlooks

What was notable about the vote on the interest rate decision?

• There was a three-way vote split

• There was a two-way vote split

• The decision was postponed

• It was a unanimous decision

Which members were in favor of a larger interest rate hike?

• Haskell and Man

• Greenberg and Economics

• Cable and Sterling

• Burden and Lizzie