The Bank of England has raised key interest rates by 50 basis points and will continue to respond ‘forcefully’ if necessary

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The Bank of England raised its benchmark interest rate by a historic 75 basis points in November – its biggest increase since 1989.

Toby Melville | Afp | Good pictures

London – The Bank of England It raised its key interest rate by 50 basis points on Thursday and signaled that more tightening is needed to control inflation.

The Monetary Policy Committee voted 6-3 in favor of a half-percentage point hike, which takes the Bank Rate to 3.5%. The increase represents a slowdown from November’s 75 basis point increase.

The year-on-year rise hit a 41-year high in October The UK’s consumer price index fell to 10.7% in NovemberThe new figures were revealed on Wednesday.

The slowdown in other major economies such as the US and Germany reflected signs that inflation may have peaked, although it remains uncomfortably high and above the Bank of England’s 2% target.

The central bank is trying to pull inflation back toward its target, while being sensitive to a fragile economy beset by a number of distinct domestic pressures and global interventions.

This was confirmed in the latest UK labor market data released earlier this week, which showed a rise in both unemployment and wage growth, while rates of economic inactivity and long-term sickness are also historically high.

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