The Bank of England (BoE), the central bank of the United Kingdom, on Thursday, raised its benchmark interest rate by 0.25 percentage points to 1.25 to curb surging inflation.
This is the fifth time the UK banking regulator has taken the move in succession to tackle inflation that has seen UK citizens struggle with high cost of living, the fastest rate for 40 years.
According to The Guardian report, BoE Monetary Policy Committee (MPC) said it was ready to act forcefully if required, signalling further rate rises in the coming months.
The United States Federal Reserve announced a 0.75-point rate rise on Wednesday, the largest single rise since 1994.
Reflecting fears about the rising cost of living as the Coronavirus pandemic and Russia’s war in Ukraine drive up global energy prices, the MPC said it was ready to launch a tougher response to inflation remaining above its target rate of 2 percent.
“The committee would be particularly alert to indications of more persistent inflationary pressures, and would, if necessary, act forcefully in response,” it said.