Bank of England announces rate hike from pandemic-era lows

View of the Royal Exchange and the Bank of England in London.

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LONDON – The Bank of England on Thursday raised interest rates for the first time since the pandemic broke out, raising its key interest rate to 0.25% from a historic low of 0.1% as inflationary pressures mount. .

UK inflation hits 10-year high in November when the Consumer Price Index rose 5.1% year-on-year, up from 4.2% in October and well above the central bank’s 2% target.

Meanwhile, the labor market recovery remains strong, with 257,000 employees added to payrolls in November, even after the end of the country’s growth plan.

After the Bank surprised markets by avoiding a rate hike in November, many analysts said the data that followed showed economic conditions starting to tighten.

However, the appearance of omicron variation and its rapid spread in England has since mixed the outlook at Thursday’s policy meeting, meaning markets are still speculating.

International Monetary Fund on Tuesday urged British policymakers to avoid “inaction bias” ahead of the vote.

—This is a breaking news story, please check back later for more. Bank of England announces rate hike from pandemic-era lows


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