The Bank of England raised its interest rate on Thursday to the highest level since late 2008, while the bank continues to battle skyrocketing inflation in the United Kingdom.
The bank’s nine-member Monetary Policy Committee raised the key interest rate by a quarter of a percentage point to 4.5%, the 12th consecutive increase.
Other major central banks, such as the US Federal Reserve and the European Central Bank, have also been raising interest rates at a steady pace to reduce inflation rates from their highest levels in decades.
The Bank of England began raising the interest rate in late 2021 from a low level of 0.1% with the aim of limiting the rise in prices, which rose significantly after the start of the war in Ukraine, which led to a rise in energy prices in particular.
In documents accompanying the decision, the bank said that food commodity prices remained high for longer than expected, resulting in expectations that consumer price inflation will decline at a slower pace than previously thought.
It is noteworthy that the bank is charged with the task of maintaining inflation within 2%. Inflation currently stands at just over 10%.
This article was originally published by RT.