The Bank of England raised interest rates today, Thursday, by a quarter of a percentage point to 1.25 percent, the highest in 13 years, and for the fifth time since December, in an effort to combat inflation.
In doing so, the Bank of England sent the strongest signal yet, that it is ready to unleash larger moves if needed to tame inflation.
The Bank of England hinted that it could join the growing global trend towards larger rate hikes, if inflation continues to rise, and said it would “be particularly attentive to indications of more persistent inflationary pressures, and will act aggressively if necessary”.
It also raised his forecast for peak inflation this year to just above 11 percent, reflecting a planned increase in the energy price ceiling in October, and said it now expects the economy to contract in the current quarter.
