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The Bank of England lifted UK interest rates by 75 basis points on Thursday, as expected.
The central bank raised rates to 3.00%. Consensus, as cited by FXStreet, had expected the 0.75 percentage point hike from the central bank.
A majority of members backed the increase, with only two members preferring smaller increases of 50 basis points and 25 points.
Swati Dhingra preferred to increase the bank rate by 0.50 percentage point, to 2.75%, and Silvana Tenreyro wanted to increase the bank rate by 0.25 percentage point, to 2.5%.
In the October meeting, Tenreyro had voted with the majority and supported the enacted 50-basis-point hike, while Dhingra had been alone in preferring a 25 point rise.
The BoE explained that with the labour market remaining tight, and cost and price pressures being elevated, a further, more forceful response from monetary policy was "justified".
"There had been continuing signs of firmer inflation in domestic prices and wages that could indicate greater persistence," the bank added.
It said that the majority of the committee judged that, should the economy evolve broadly in line with the latest Monetary Policy Report projections, further increases in the bank rate "might be required" for a sustainable return of inflation to target, "albeit to a peak lower than priced into financial markets".
The BoE said it expects UK consumer price inflation to slow early next year after peaking at 11% in the fourth quarter of this year. It noted that peak rate is lower than previously anticipated, due to UK government plans to hold down energy prices.
The decision comes a day after the US Federal Reserve lifted its own interest rates by 75 basis points, as expected, taking the range for the federal funds rate to 3.75% to 4.00%, from 3.00% to 3.25%.
Wednesday's hike was the US central bank's fourth 75bp rate lift in a row.
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