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%.