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 regarding the interest rate hike?

What was the significance of the cooler than expected June inflation print?

What was the expected interest rate hike mentioned in the text?

What criticism is mentioned regarding the Bank of England's reaction function?

What was interesting about the voting split mentioned in the text?