![Bank of England hikes interest rates and gets closer to ending its tightening cycle](/.imaging/mte/efg-revamp/547x300/dam/efg/insights/2022/Insights-new-formats/Insight_UK-Budget_Preview-Perspective_648x422px.jpg/jcr:content/Insight_UK Budget_Preview-Perspective_648x422px.jpg)
Bank of England hikes interest rates and gets closer to ending its tightening cycle
On 2 February the Bank of England’s Monetary Policy Committee (MPC) voted in favour of a 0.5% interest rate increase to 4.0%. This represented the tenth rate increase since December 2021 as the BoE continues to grapple with high levels of inflation. In the press conference after the meeting, BoE Governor Andrew Bailey stressed that the MPC believes it is still too soon to declare victory over inflation as it remains elevated at 10.5% year-on-year (yoy). However, markets believe the central bank is near the end of its tightening cycle.