The Bank of England surprised markets with a 50 basis points hike to interest rates, taking its base Rate to 5%, in its 13th consecutive increase as policymakers tackle persistently high inflation. The move defied market expectations, which had priced in around a 60% chance of a 25 basis point hike. Fresh data on Wednesday showed annual U.K. consumer price inflation was 8.7% in May, unchanged from the previous month, and core inflation, which excludes volatile energy, food, alcohol and tobacco prices, was 7.1% year-on-year in May, up from 6.8% in April and marking its highest rate since March 1992.

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