Bank of England approves 12th consecutive interest rate hike
The Bank of England has given the green light for another increase in interest rates, marking the 12th consecutive rise. The Bank of England, in its ongoing efforts to combat rising costs, has announced a 0.25% increase in interest rates, raising them from 4.25% to 4.5%. This brings the rates to their highest level since 2008, as the central bank tackles rising inflation and the ongoing cost-of-living crisis in the UK economy.
The Monetary Policy Committee voted 7 to 2 in favor of the increase, showing a cautious stance. The decision is in line with the recent rate hike by the Federal Reserve in the US.
The Bank of England cited higher-than-expected inflationary pressures as the main reason for the decision. They projected that inflation will decline in the coming years but will closely monitor persistent inflationary pressures. If needed, further tightening of monetary policy may be required.
While today's increase aims to curb inflation, which currently stands at 10.1%, it is still above the Bank of England's target.
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