Bank of England raises interest rates again, sees inflation shock fading

The Bank of England raised interest rates by a further quarter of a percentage point on Thursday and said it expected the surge in British inflation to cool faster than before, despite a surprise jump in price growth last month, Azernews reports citing Reuters.

Sounding more upbeat about the outlook for the country's slow economy, the BoE's nine rate-setters voted 7-2 in favour of a 25 basis-point increase in Bank Rate to 4.25%, as expected in a Reuters poll of economists.

That was its 11th consecutive increase in borrowing costs, beginning in December 2021, although it was the smallest rise since June.