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Bank of England nudges rates up again, but says ready to act forcefully

BoE raises rates by another 25 basis points to 1.25%; hike is smaller than recent moves by other central banks

A bird flies past The Bank of England in the City of London (Photo: Reuters)
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A bird flies past The Bank of England in the City of London (Photo: Reuters)

Reuters London
The Bank of England stuck to its gradual increases in interest rates on Thursday, as other central banks took more urgent action, but said it was ready to act "forcefully" if needed to stamp out dangers posed by inflation it now sees topping 11%.

A day after the U.S. Federal Reserve raised rates by the most since 1994 with a 75 basis-point hike, the BoE increased Bank Rate by another 25 basis points as it warned that Britain's economy would shrink in the April-June quarter.

The nine-strong Monetary Policy Committee voted 6-3 for the 25 basis-point hike in Bank Rate to 1.25%,

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First Published: Jun 16 2022 | 5:38 PM IST

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