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 “forcefully” if needed and said inflation had probably peaked.

Softening their forecasts of recession this year, the BoE’s nine interest rate-setters voted 7-2 to increase Bank Rate to 4% – its highest since 2008 – 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.