Europe's Two Big Central Banks Raise Rates
Are Europe's central bankers seeing a greater threat from inflation than the markets previously thought? Apparently so. In a surprise move, Bank of England officials hiked the benchmark British interest rate by 25 basis points on Aug. 3, while the BoE's Continental counterpart, the European Central Bank, tightened by a similar amount, as had been widely expected. The moves bring the BoE's key policy rate to 4.75%, while the ECB's refi rate rises to 3.0%.
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