The Bank of England on Thursday, as expected, raised its bank rate by 25 basis points, or a quarter of a percentage point, to 0.75%. The nine-member Monetary Policy Committee voted unanimously for the hike.
“Since the May Inflation Report, the near-term outlook has evolved broadly in line with the MPC’s expectations,” the committee said in a statement. “Recent data appear to confirm that the dip in output in the first quarter was temporary, with momentum recovering in the second quarter.
The labor market has continued to tighten and unit labor cost growth has firmed.” In a nod to difficult Brexit negotiations, the MPC said it “continues to recognise that the economic outlook could be influenced significantly by the response of households, businesses and financial markets to developments related to the process of EU withdrawal.:
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