English
Bank of England raises interest rates to 0.75% from 0.5%, in line with expectations
Bank of England raises interest rates to 0.75% from 0.5%, in line with expectations
The Bank of England raised interest rates for the third consecutive meeting as the conflict between Russia and Ukraine is expected to keep inflation rates higher for a longer period.
The Bank's Monetary Policy Committee voted in favor of a 25 basis point increase in the bank's base interest rate, raising it to 0.75%.
Inflation in the UK had already hit its highest level in 30 years before the Russian war on Ukraine, which has driven up energy prices and will put further upward pressure on the central bank's inflation expectations.
At its last meeting in February, the Monetary Policy Committee imposed consecutive rate hikes for the first time since 2004 and raised its inflation forecast to a peak of 7.25% in April, on the back of strong growth and strong employment.
The bank said at the time that any further monetary tightening would depend on the medium-term outlook for inflation, which then rose due to Moscow's attack on Ukraine and subsequent threats to energy supplies.
