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BoE raise interest rates to highest point since 2008

BoE vote 7-2 in favour of 25bp hike..
The Bank of England have today raised interest rates as expected to 4.25%, in what is the 11th consecutive hike. Following a surprise jump in inflation last month and with the Fed raising rates by the same margin yesterday, the result was inevitable today. The pound remains at the higher end of ranges, after a good 2-week run.

A peak of 4.5% has been the call by the majority of economists for a good while now, but with inflation still so high, we could be pushing to a peak 5% instead (good news for £). The bank also suggest that the UK is no longer heading towards an immediate recession, something they expected to see back in October. 

They forecast slight growth in the coming months, in place of an initial shrinking forecast. Inflation is expected to fall steadily from now on with falling energy prices contributing mainly to this factor. Despite current global banking turmoil, the BoE suggest the UK banking system is safe, robust and resilient. All-in-all, positive news for the UK & £ today..