BoE decided to raise the Bank Rate by 0.15 bps to 0.25%, with 8-1 vote. Silvana Tenreyro was the only MPC member voted for no change. The MPC also voted unanimously to maintain the stock of government bond purchases at GBP 875B, and corporate bond purchases at GBP 20B.
The central bank said it will review developments, including the impact of Omicron, in the February Monetary Policy Report, with focus on medium term prospects for inflation. There are “two-sided risks around inflation outlook in the medium term”. But, “some modest tightening of monetary policy over the forecast period is likely to be necessary to meet the 2% inflation target sustainably”.
