The policy statement, however, leaned dovish, suggesting consensus expectations for the central bank to bring its Bank Rate to 2% by year-end might have gotten ahead themselves. “Some further modest tightening might be appropriate in the coming months, but there were risks on both sides of that judgement depending on how medium-term prospects evolved,” said the MPC. That quickly sent the British pound lower by about 1% vs. the U.S. dollar and the euro.
Bank of England Raises Interest Rates Back to Pre-Pandemic Level of 0.75%
