The Bank of England announced a 50bps rate hike after the US Federal Reserve raised interest rates yesterday.
The Bank of England said, in a statement, that the decision to raise interest rates in Britain, which came in line with experts' expectations of a 0.5% increase, to now reach 2.25% after it was 1.75%.
Last August, the Bank of England raised interest rates in Britain to 1.75%, as it looks to combat hyperinflation, which is expected to reach 13% later this year.
This is the seventh consecutive increase from the Bank of England, and it is also the largest increase in interest rates in 27 years, i.e. since the establishment of the Monetary Policy Committee (MPC) in 1997, and interest rates are now at their highest level since December 2008.
This decision came after the Fed's decision yesterday to raise the interest rate by 0.75%, in conjunction with the suffering of the pound sterling in light of the growing dollar's strength.
Britain's inflation rate was 9.4% annually until last June, due in part to a 42% increase in gasoline prices year-on-year, and a nearly 10% increase in food prices.
Last July, Bank of England Governor Andrew Bailey said: "The committee will be particularly alert to signs of further persistent inflationary pressures, and will act aggressively if necessary, and bringing inflation back to the 2% target sustainably is our business."
The bank also revealed plans to begin selling the 850 billion pounds ($1 trillion) of government debt accumulated through its bond-buying program during the pandemic and financial crisis