UK central bank hikes rates like Fed amid financial turmoil

By DANICA KIRKA
Associated Press

LONDON (AP) — The Bank of England has extended its battle against inflation, announcing an 11th consecutive interest rate increase despite concerns about the economic fallout from troubles in the global financial system. Britain’s central bank boosted its key rate by a quarter-percentage point to 4.25% on Thursday. It’s a day after the U.S. Federal Reserve approved a similar move to tame inflation that’s crimping household budgets and slowing economic growth. The decisions followed unexpected news that U.K. inflation accelerated to 10.4% in February, driven by food costs. Before that, many analysts had expected the Bank of England to keep rates on hold following the collapse of two U.S. banks and the ensuing turmoil at Switzerland’s Credit Suisse.