GB: The BoE raises its key rate by half a point despite the risk of a long recession | Photo credits: Bank of England / CC BY-NC-ND 2.0
by William Schomberg and David Milliken
LONDON, Aug 4 (Reuters) – The Bank of England (BoE) on Thursday made the biggest hike in its key interest rate in 27 years in a bid to stem inflation, which is expected to top 13%, while warning that a long recession was imminent
It raised its key rate by half a point to 1.75%, as expected by a large majority of economists and analysts polled by Reuters before the meeting of the Monetary Policy Committee (MPC).
The decision was voted by eight votes, with only one Committee member voting for a quarter-point increase. (Report William Schomberg and David Milliken, French version Laetitia Volga, edited by Nicolas Delame)