![]() "The MPC will adjust Bank Rate as necessary to return inflation to the 2% target sustainably in the medium term, in line with its remit." "If there were to be evidence of more persistent pressures, then further tightening in monetary policy would be required," the central bank said. The central bank added that it is not ruling out other hikes if inflation rises. Monetary policy will ensure that, as the adjustment to these shocks continues, CPI inflation will return to the 2% target sustainably in the medium term," the central bank said. The economy has been subject to a sequence of very large and overlapping shocks. The framework recognises that there will be occasions when inflation will depart from the target as a result of shocks and disturbances. "The MPC's remit is clear that the inflation target applies at all times, reflecting the primacy of price stability in the U.K. Last month the Consumer Price Index rose to 10.5%, coming in much hotter than expected. The central bank said that inflation remains its primary focus. banking system remains resilient," the central bank said in its monetary policy statement. ![]() banking system maintains robust capital and strong liquidity positions, and is well placed to continue supporting the economy in a wide range of economic scenarios, including in a period of higher interest rates. "The Bank of England's Financial Policy Committee (FPC) has briefed the MPC about recent global banking sector developments. In a tone set by the Federal Reserve Wednesday, the British central bank downplayed the growing tensions in the global banking sector and is focused on bringing inflation down to its 2% target. In line with expectations, the BoE raised its Bank Rate to 4.25%, up from 4.00%. ![]() Gold prices are stuck in neutral territory against the pound following the latest monetary policy decision. ( Kitco News) - A sharp jump in inflation last month all but confirmed the Bank of England's latest 25 basis rate hike Thursday. Receive a comprehensive recap of the day's top stories directly to your inbox. Get all the essential market news and expert opinions in one place with our daily newsletter.
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