The markets have rallied slightly as the Bank of England returned the base rate to its pre-pandemic level.
The monetary policy committee decided yesterday to increase the interest rate to 0.75%, with only one member voting against the change.
The FTSE 100 gained 1.3% and the pound fell by 0.3% against the dollar to 1.311. Brent crude rose by 8.8% to $106.64, its biggest one-day percentage gain since May 2020.
Critics have said the bank is still dangerously behind the curve on inflation, which is expected to hit 8% by June – four times the bank’s target rate.
