© Reuters.
By Geoffrey Smith
Investing.com -- The Bank of England raised its key interest by 50 basis points to a new 14-year high of 3.50%, its latest shot at trying to tame rampant inflation without pushing the U.K. economy into a deep recession.
The step is smaller than the 75 basis point hike announced at the Bank's last meeting, and reflects the fact that quarterly GDP growth has been negative for three months already.
The Bank said its nine-strong Monetary Policy Committee was split three ways, with six members voting for the 50 basis point hike, one voting for a hike of 75 basis points, and two voting to keep the Bank rate unchanged at 3.0%
The Bank's action follows a similar move by the Federal Reserve on Wednesday in trimming the size of its interest rate increases to 50 basis points from 75, amid increasing signs of an economic slowdown in the U.S. Fed chair Jerome Powell had reiterated, however, that the Fed still has "a ways to go" in raising rates, whereas most economists expect the BoE to halt its rate increases early next year.
We read at: Investing.com