Bank of England hikes interest rates but resists bolder move

By DANICA KIRKA
Associated Press

LONDON (AP) — The Bank of England has raised interest rates by a quarter-percentage point, shrugging off pressure for a bolder move to combat price increases that have pushed inflation to a 40-year high. The bank’s monetary policy committee voted 6-3 on Thursday to boost its key rate to 1.25%, with the dissenters supporting a half-point increase. The U.S. Federal Reserve acted more aggressively Wednesday, raising its benchmark rate by three-quarters of a percentage point to a range of 1.5% to 1.75%. The U.K. central bank said its decision was based on an effort to contain inflation without choking off economic growth, which was just starting to recover from the coronavirus pandemic when food and energy prices began to rise worldwide.