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 Prime Minister Rishi Sunak's priority concerning inflation?

What does the Bank of England say about the economic outlook for the UK?