Bank of England raises interest rates once more, but warns that it is prepared to act strongly if necessary

The Bank of England’s Monetary Policy Committee voted 6-3 for the hike to 1.25%, the same breakdown as in May.
Britain’s benchmark rate is now at its highest since January 2009, when borrowing costs were slashed as the global financial crisis raged.
It was the fifth time the BoE has raised rates since December.
The Bank of England’s Monetary Policy Committee (MPC) has voted 6-3 in favor of raising interest rates to 1.25%.
Economists polled by Reuters had forecast the rate would be held at 1.20%.

The BoE noted that the market path for British interest rates had risen materially since the May meeting.
Central banks around the world are trying to contain inflation that is hitting levels not seen in decades.
Consumer price inflation hit a 40-year high of 9% in April, more than four times the BoE’s 2% target.
The central bank said last night it would peak slightly above 11% in October when energy bills go up again.
Britain’s inflation surge looks set to last longer than in many other economies because of its mechanism for domestic power tariffs.

This report’s information was first seen on Reuters; to read more, click this link.