The bank has increased interest rates due to high crude oil prices, wars in Ukraine and Russia and rising inflation due to COVID-19 concerns.
The monetary policy committee of the central bank has decided to raise interest rates for the fourth consecutive meeting. With this, the key policy rate has been increased from one quarter percent to one percent.
The decision by Britain’s central bank comes a day after the US Federal Reserve took steps to control inflation. The US central bank has approved the biggest 0.5 per cent hike in policy rates in more than two decades.
Apart from this, central banks of many other countries of the world including Australia to Sweden have started taking similar steps.
AP Jatin Raman