The bank is raising interest rates again.
(Photo: AP)
London The central bank in London is bracing itself against high inflation with the fourth rate hike within six months. The Bank of England (BoE) increased it by a quarter point to 1.0 percent on Thursday. The UK has not seen monetary tightening like this in a quarter of a century. The decision was made by six votes to three, with three currency watchdogs unsuccessfully calling for an even larger step to 1.25 percent.
The US Federal Reserve had raised interest rates by half a percentage point to counteract inflation.
Most BoE policymakers believe further tightening is warranted in the coming months. They deleted the word “moderate” to describe future steps.
In December, the BoE became the first of the major central banks to tighten the reins since the beginning of the corona pandemic. Further tightening followed in February and March. With the aggressive monetary policy line, the monetary authorities want to contain the high inflation. In the UK, it was most recently at a 30-year high of 7.0 percent and is likely to hit the 10 percent mark in the near future.
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