UK central bank hikes rates like Fed amid financial turmoil
The Bank of England has extended its battle against inflation, announcing an 11th consecutive interest rate increase despite concerns about the economic fallout from troubles in the global financial system
LONDON (AP) — The Bank of England extended its battle against inflation Thursday, announcing an 11th consecutive interest rate increase despite concerns about the economic fallout from troubles in the global financial system.
Britain’s central bank boosted its key rate by a quarter-percentage point to 4.25%, a day after the U.S. Federal Reserve approved a similar move to tame price increases that are crimping household budgets and slowing economic growth.
The decision followed unexpected news that U.K. inflation accelerated to 10.4% in February, driven by the cost of food, clothing and dining out. Before the figures were released Wednesday, many analysts had expected the Bank of England to keep rates on hold following the collapse of two U.S. banks and the hastily arranged takeover of Swiss banking giant Credit Suisse.
“A banking curve ball has been thrown into the Bank of England’s already tricky juggling act, but for now the eye of policymakers is still firmly trained on catching inflation and bringing it under control,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown, which manages more than 120 billion pounds ($147 billion) for investors.
