Bank of England raises its key interest rate to 3.5% from 3%

Bank of England raised its key interest rate to 3.5 percent from 3 percent today. It is ninth rate rise in a row as the Bank tries to speed inflation’s return to target after price growth hit a 41-year high in October.

The Bank of England’s Monetary Policy Committee voted 6-3 in favour of the move.

It said, further increases in Bank Rate may be required to tackle what it fears may be persistent domestic inflation pressures from prices and wages.

The move follows the U.S. Federal Reserve’s decision on Wednesday to raise its main rate by half a point, as Western central banks grapple with post-COVID labour shortages.