The Bank of England has increased interest rates by half a percentage point to a 15-year high of 4 per cent, but suggested that rates may have reached their peak.
The BoE, which is now anticipating a milder recession this year than previously thought, said further rises would only be needed if there were new signs that inflation was going to stay too high for too long. It dropped previous guidance that it could act “forcefully”.
The Monetary Policy Committee voted seven to two in favour of the 10th consecutive rate increase.
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