BOE Hikes Key Rate by 25 Basis Points to 4.5%

The Bank of England's recent decision involved a 25 basis point hike, despite previous dovish stances by members like Swati Dingra and Sylvana Tenrairo. Concerns about monetary transmission lag were overruled due to persistent double-digit inflation in the UK. The committee revised its inflation outlook, predicting a slower decline, which contrasts with Prime Minister Rishi Sunak's goal to halve inflation by year-end. However, the BOE's upward revision of the GDP forecast suggests no recession is imminent for the UK.

What was the voting split in the Bank of England's recent decision?

• 5-4

• 7-2

• 8-1

• 6-3

What is the main concern of Silvana Tenrairo regarding monetary policy?

• Trade deficits

• Currency devaluation

• Monetary transmission lag

• High unemployment

Why did the committee decide on a 25 basis point hike?

• To boost exports

• To control double-digit inflation

• To increase employment

• To stabilize the currency

What is the Bank of England's revised outlook on inflation?

• Inflation will rise rapidly

• Inflation will drop sharply

• Inflation will fall more slowly

• Inflation will remain constant

What is the Prime Minister's top priority regarding the economy?

• Lowering interest rates

• Reducing inflation by year-end

• Boosting exports

• Increasing GDP