The Bank of England, the British central bank, raised interest rates by half a percentage point. This means that the UK interest rate is now at 5 percent, which is the highest rate since 2008. According to the central bank, the increase is necessary because inflation is still very high.
It is the thirteenth time in a row that interest rates have risen in the UK. The fact that interest rates were raised by half a percentage point this time came as a surprise to many economists. They assumed an increase of a quarter of a percentage point.
The central bank’s decision, however, was not unanimous. Of the nine directors, seven voted in favor of the half percentage point increase and two against. It won’t be the last vote for a while. The Bank of England said in today’s interest rate decision that further rate hikes will be needed if inflation remains high. Like the European Union, the UK aims for an inflation rate of around 2%.
Source: BNR
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
