Bank of England raises interest rate to 1.25%

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.

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Lawrence Baraza

Lawrence Baraza is a dynamic journalist currently overseeing content at Metropol TV Digital. With a keen focus on business news and analytics, Lawrence guides the platform in delivering insightful, data-driven content that empowers its audience to make informed decisions. Lawrence’s commitment to quality and his ability to anticipate market trends make him a key figure in the digital media landscape. His work continues to shape the way business news is consumed, making a significant impact in the field.
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