The November meeting of the Bank of England ’s Monetary Policy Committee (MPC) saw the central bank hike the Bank rate by 25bps to 4.00%, as expected. It marks the first rate increase in the UK since August 2023. In the six successive meetings prior to today, the central bank had left rates unchanged.
Once again, the decision by the BoE was not unanimous. The MPC was split 8:1 in favour of the 25bps rate hike. However, external member Catherine Mann dissented, preferring instead to raise rates by 50bps. She noted that “from a risk management and credibility perspective, a 50bps hike ” is “good policy ”.
