As expected, the British central bank further tightened its monetary policy. The Bank of England said the key interest rate would rise by 0.25 percentage points to 1.25 percent on Thursday after the meeting of the MPC monetary policy committee in London. Analysts had expected this in the move.
After the fifth interest rate hike in the corona pandemic, the key interest rate in Great Britain is as high as it was last in 2009. The monetary watchdogs made an initial increase at the end of last year, with further steps following in February, March and May.
The background to the tighter monetary policy is the high level of inflation, which has recently risen to nine percent. This is the highest rate since the current consumer price index was introduced in 1997. The value is also well above the central bank’s medium-term target of two percent.