# Bank of England opt for inflation over omicron surge in rate hike

> The Bank of England voted 8-1 to raise its interest rate to 0.25% from a record low of 0.1%, despite Omicron concerns. The bank forecasts inflation reaching 6% in April, and the move surprised markets that had expected a February hike.

- Date: 2021-12-17 · published 2021-12-17T12:00:00.000Z
- Category: macro · region UK · magnitude medium
- Page: https://feedsoft.ai/events/43866-bank-of-england-opt-for-inflation-over-omicron-surge-in-rate-hike
- Commodities: [British Pound (USD per GBP)](https://feedsoft.ai/c/GBPUSD.md)

## Why it matters

A surprise UK rate hike lifts sterling and tightens financial conditions in the UK. Feed importers priced in dollars may face changed costs as sterling moves.

## Read by commodity

- GBPUSD: bullish ▲

## Sources

- haberintelifi.aa.com.tr: https://haberintelifi.aa.com.tr/en/economy/bank-of-england-opt-for-inflation-over-omicron-surge-in-rate-hike/2449724

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.