Suryaa Business Desk: The Bank of England has taken a key policy decision to increase its benchmark interest rate by 25 basis points to 4 percent. The decision was made during the Monetary Policy Committee review held on November 5 to curb rising inflation in the United Kingdom. This marks the first interest rate hike by the central bank in over three years.
The bank noted that rising international energy prices have accelerated domestic inflation. Geopolitical factors, including the crisis in West Asia, have led to unexpected increases in crude oil and natural gas prices, impacting the British economy. The Bank of England warned that inflation could reach 5 percent, exceeding its 2 percent target. Analysts anticipate that this rate hike will increase the interest burden on mortgages, personal loans, and corporate debt, leading to higher costs for the public and businesses. Economic policymakers stated that such measures are necessary to control inflation.