The Bank of England announced that it has raised interest rates by 0.5 percentage points to 2.25 percent in an effort to fight inflation.
Threadneedle Street raised its key policy rate for the seventh time in a row, judging that the risk of inflation continuing to creep into the economy outweighed the short-term risk of recession.
The country had been bracing for a rise of at least 0.5 percentage points, although the move was halted by many traders’ expectations of a 0.75 percentage point increase.
The decision by the Bank of England’s Monetary Policy Committee takes this rate to its highest level since 2008.
