The Bank of England on Thursday hiked its interest rate for the eleventh time in a row, as policymakers seek to tackle soaring inflation despite turmoil in the banking sector.
The British central bank’s Monetary Policy Committee voted at a regular meeting to lift its key interest rate by 25 basis points to 4.25 percent, the highest level since late 2008.
For the latest headlines, follow our Google News channel online or via the app.
The announcement followed hikes in the United States, Norway and Switzerland.
Policymakers “will continue to monitor closely indications of persistent inflationary pressures, including the tightness of labor market conditions and the behavior of wage growth and services inflation”, the BoE said in a statement.
“If there were to be evidence of more persistent pressures, then further tightening in monetary policy would be required.”
The decision had been widely expected after shock official data showed that British annual inflation accelerated in February despite central bank efforts to tame a growing cost-of-living crisis.
The Consumer Prices Index rose by 10.4 percent in the 12 months to February, up from 10.1 percent in January.
The news strengthened the case for another interest rate hike, despite calls for no change amid recent turmoil in the commercial banking sector.
Swiss government suspends forms of variable remuneration at Credit Suisse
UK inflation rate unexpectedly rises to 10.4 pct in February: ONSBritish inflation unexpectedly rose to 10.4 percent in February, pushed up by higher food prices and pricier drinks in pubs and restaurants, official ... Economy
UK shoppers cut back spending as inflation worsensInflation-pinched British shoppers unexpectedly cut their spending in December, official data showed on Friday, dashing hopes for a Christmas shopping ... Economy
Data finds UK unemployment stable, wages slammed by inflationUK unemployment is steady, but wages have tanked further, official data showed Tuesday, as sky-high inflation sparks a cost-of-living crisis and ... Economy
Boris Johnson skeptical about UK PM Rishi Sunak’s new Brexit dealFormer British Prime Minister Boris Johnson on Thursday poured cold water on current premier Rishi Sunak’s new Brexit deal with the European Union, ... World News