In December, the British central bankers became the first of the major central banks to hike interest rates since the beginning of the pandemic.
(Photo: Reuters)
London The central bank in London followed suit a few weeks after the interest rate hike. It raised the key monetary policy rate by a quarter point to 0.5 percent on Thursday. Experts polled by Reuters had expected it. In December, the Bank of England became the first of the major central banks to raise interest rates since the start of the pandemic – from 0.1 to 0.25 percent.
The central bank is reacting to the rapid rise in prices on the island: the inflation rate rose to 5.4 percent in December, the highest level in almost three decades. Economists assume that it will even rise above the seven percent mark in the coming months and thus exceed the central bank’s target of 2.0 percent.
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