The Bank of England has raised interest rates by half a percentage point as it sought to tame double-digit inflation that is fueling a cost-of-living crisis, public-sector strikes and fears of recession.
The bank’s monetary policy committee voted 7-2 on Thursday to push its key rate to 4%, approving the 10th consecutive rate increase since a post-pandemic surge in the world economy and Russia’s war in Ukraine drove inflation to 40-year highs. The move was in line with the expectations of most economists.
Economists suggest this may be the last big rate increase for Britain’s central bank as inflation begins to ease.
The U.S. Federal Reserve has already started tapering its response, boosting its key rate by just a quarter-point Wednesday. The European Central Bank, meanwhile, is expected to go big again, with economists forecasting a half-point increase Thursday.
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