In November, the central bank carried out the largest rate hike in 33 years with an increase of 0.75 percentage points.
(Photo: AP)
London The Bank of England (BoE) has raised interest rates for the ninth time in a row. It raised it by half a point to 3.50 percent on Thursday. In November, with an increase of 0.75 percentage points, the interest rate hike was the largest in 33 years in order to curb the massive rise in prices. The current interest rate decision was controversial internally: the decision to increase by 50 basis points was approved by six to three votes.
At the same time, the currency watchdogs declared that further increases might be necessary in the fight against inflation. The monetary watchdogs in London are following the US Federal Reserve with their interest rate hike, which also took a step of half a percentage point on Wednesday and thus also slowed down its pace.
The BoE is under pressure to act because the sharp increase in the cost of living on the island has led to social tensions, which are now erupting in waves of strikes. The central bank also fears that the UK could face a long recession. In the three-month period from August to October, economic output fell by 0.3 percent.
And the double-digit inflation rate is way off the BoE’s target of 2.0 percent. In November, however, inflation moderated somewhat – to 10.7 percent from 11.1 percent in October – the highest level since 1981. The Bank of England raised interest rates for the ninth consecutive time. It raised it by half a point to 3.50 percent on Thursday.
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In November, with an increase of 0.75 percentage points, the interest rate hike was the largest in 33 years in order to curb the massive rise in prices. This has weakened somewhat recently: the inflation rate was 10.7 percent in November after 11.1 percent in October.
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