Bank of England hikes interest rate

LONDON: The Bank of England (BoE) yesterday hiked its interest rate for a tenth time in a row as global authorities race to combat sky-high inflation. It also forecast a shallowerthan-expected UK recession this year as the country faces a cost-of-living crisis.

The BoE voted at a regular meeting to lift its key interest rate by a half-point to 4.0%, the highest level since late 2008.

The hike was double the lift announced by the US Federal Reserve on Wednesday, while the European Central Bank was also set to raise its rate again yesterday.

Policymakers voted 7-2 in favour of the rate increase, with a minority calling for no change. |