BOE: Instant Answers - Bank Rate Hiked to 3.00%

1.    Was the Bank Rate raised, and if so by how much? Yes, by 75bp to 3.00%.

2.    Number of members voting for a 25bp hike (or unchanged)? One- Tenreyro.

3.    Number of members voting for a 50bp hike? One- Dhingra.

4.    Number of members voting for a 75bp hike? Seven.

5.    Number of members voting for a 100bp or larger hike? NB: On questions 2-5 we will name the dissenters. Zero.

6.    Did the MPC drop its previously formatted September ‘guidance’? No. The Committee reiterated that they would respond forcefully, as necessary again, should the outlook suggest more persistent inflationary pressures. The clause "including from stronger demand" was excluded.

7.    If no to Q6, did the MPC still suggest “forceful” action could be required? N/A.

8.    If no to Q6, did the MPC suggest “significant” action could be required? N/A.

9.    If any ‘guidance’ was offered by the MPC, was it backed by all or by most/majority of the MPC? All. 

10.    Around what level and when do the MPC see CPI peaking? 10.9% in Q4 2022. 

11.    UK CPI rate in two years' time at market rates / constant rates of 3.00% (mode). Markets rates:+1.43% yoy / Constant rates: +2.16% y/y.

12.    UK CPI rate in three years' time at market rates / constant rates of 3.00% (mode). Markets rates:+0.02% yoy / Constant rates: +0.84% y/y.

13.    What is the Bank's forecast for Y/Y Q4 2023 GDP? -1.94% y/y.

14.    What is the Bank's forecast for Y/Y Q4 2024 GDP? -0.13% y/y.

----  Also of note: The BOE stated (separate to the guidance) that the majority of the Committee sees further increases in Bank Rate may be required for a sustainable return of inflation to target, albeit to a peak lower than priced into financial markets.