UK Sees Biggest Interest Rate Hike in 27 Years Amid Soaring Inflation, Coming Recession

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Soaring inflation expected to climb to over 13 percent has prompted the UK’s central bank to deliver the biggest interest rate hike in 27 years even as officials warned Great Britain is heading into a recession.

The Bank of England (BOE) announced on Aug. 4 that its rate-setting body, the Monetary Policy Committee (MPC), voted 8–1 to raise the key interest rate by 50 basis points to 1.75 percent.

The lone dovish view on the committee called for a 25 basis point hike, while all nine MPC members expressed concern about decades-high inflation and further upward pressure on prices, vowing to keep raising rates at future meetings if needed.

“The Committee will be particularly alert to indications of more persistent inflationary pressures, and will if necessary act forcefully in response,” the MPC said in a statement.

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