The Bank of England on Thursday raised its key interest rate for the 14th time in a row and said it may do so again as it tries to cool the fastest rise in consumer prices in the Group of Seven advanced democracies.
The U.K.’s central bank increased its bank rate to 5.25% from 5%, lifting it to its highest level since February 2008 and matching recent moves by both the Federal Reserve and the European Central Bank.
Like the U.S., the U.K.’s economy has proved surprisingly resilient over the past year, defying expectations that it would slip into recession following the surge in food and energy prices that followed Russia’s invasion of Ukraine. However, economists warn that rising borrowing costs may yet push it into contraction.
Read the full story on The Wall Street Journal here.