Bank of England raised the interest rate to 5.25% in August 2023, the 14th consecutive increase to combat high inflation. Borrowing costs hit a fresh 2008 high. Some expected a 50bps hike, but most bet on 25 bps. Policymakers aim to sustainably return inflation to the 2% target in the medium term and anticipate inflation to decline to around 5% by year-end, reaching the 2% target by Q2 2025.