Bank of England raises interest to 4%, highest since 2008

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Bank of England raises interest to 4%, highest since 2008

LONDON: The Bank of England raised interest rates for the 10th time in a row tosday but dropped its pledge to keep increasing them โ€œforcefullyโ€ if needed and said inflation had probably peaked.

Softening their forecasts of recession this year, the BoEโ€™s nine interest rate-setters voted 7-2 to increase Bank Rate to 4% โ€“ its highest since 2008 โ€“ from 3.5%.

The move had been expected by most investors and economists.

The announcement comes a day after the US Federal Reserve slowed the pace of its rate hikes with a smaller quarter-point move, but said it expected further increases would be needed.

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