You are currently viewing Bank of England Raises Interest Rates to 2.25%

The central bank is fighting to tame inflation in Britain, which is running near its fastest pace in decades.

As Britain goes through a period of vast change, with a new government and new monarch, the central bank is continuing its efforts to stop high inflation becoming embedded in the economy with a steady, predictable increase in interest rates.

The Bank of England raised its key rate by another half a percentage point on Thursday, to 2.25 percent, taking it to the highest level since late 2008, but disappointing some who thought it would have made a three-quarter-point move. In Britain, consumer prices rose 9.9 percent in August from a year earlier, slowing slightly from the previous month but still near the fastest pace of inflation in four decades, as energy and food prices climbed higher.

Policymakers also voted to start selling the bank’s holdings of British government bonds back to the market,

Keep reading this article on The New York Times Business.

Leave a Reply