The central bank’s Monetary Policy Committee voted 6-3 in favor of the half-percentage-point hike.
The Bank of England on Thursday hiked its main interest rate by 50 basis points and signaled that more tightening will be needed to rein in inflation.
The Monetary Policy Committee voted 6-3 in favor of the half-percentage-point hike, which takes the bank rate to 3.5%. The rise marks a slowdown from November’s 75 basis-point increase.
“The labour market remains tight and there has been evidence of inflationary pressures in domestic prices and wages that could indicate greater persistence and thus justifies a further forceful monetary policy response,” the MPC said in its statement on Thursday.
“The majority of the Committee judges that, should the economy evolve broadly in line with the November Monetary Policy Report projections, further increases in Bank Rate may be required for a sustainable return of inflation to target.
