• On Thursday, the Bank of England (BoE) raised its key interest rate by a quarter of a percentage point to 5.25% — reaching a 15-year high. Reuters (LR: 3 CP: 5)
• Within the bank's Monetary Policy Committee, six voted for the 0.25% increase, two voted for a 0.5% increase, while a single member voted for interest rates to remain the same. Yahoo Finance
• Following the 14th consecutive rate hike, the BoE forecast that the UK would continue to avoid a recession. However, the bank also revealed that its target of a 2% inflation rate would likely only be met in Q2 of 2025, later than it had previously suggested. Yahoo Finance
• The increase was only half the size of the bank's previous hike in July. Interest rates had been as low as 0.1% in the UK in December 2021. UK inflation currently sits at 7.9%, the third-highest rate among the G20 nations. Evening Standard
• Looking forward, Andrew Goodwin — chief economist for Oxford Economics — stated that a further rate increase is expected for September, at which point the "present rate rise cycle should come to an end." Yahoo Sports
• Both the US Federal Reserve and the European Central Bank also increased interest rates last week. Reuters (LR: 3 CP: 5)

Establishment-critical narrative:

• The UK's economy didn't need to be like this. Governments — such as Spain's — that took both quicker and more concerted action, rather than relying solely on the decisions of a central bank, have already seen inflation fall below the 2% target. Interest rate hikes can indeed decrease inflation, but at the cost of fewer jobs, higher mortgage rates, and lower long-term growth. It's not too late to change course and follow the paths of those who have already successfully negated the issue of inflation.
  Guardian (LR: 2 CP: 5)

Pro-establishment narrative:

• Despite much uncertainty and unpopularity surrounding decisions concerning the BoE and the UK's economy, the cost of living squeeze hasn't seen many of the negatives often associated with monetary tightening. Consumption remains strong, and there are a million vacancies in the employment market. While an uncomfortable journey, the BoE is managing to walk the tightrope of draining the economy of inflation while keeping the UK afloat.
  The Telegraph

Nerd narrative:

• There's a 50% chance that the UK's annual inflation rate for 2023 will be at least 7.02% in 2023, according to the Metaculus prediction community.
  Metaculus (LR: 3 CP: 3)