Economics

BOE Says ‘More Persistent’ Inflation Prompted Surprise Rate Rise

U.K. decision follows hawkish Fed move signaling tightening
Most economists anticipated no change from BOE on Thursday

Bank of England Raises Benchmark Interest Rate to 0.25%

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By David Goodman, Lizzy Burden, and Philip Aldrick

December 16, 2021 at 12:07 PM UTC

Updated on

December 16, 2021 at 2:29 PM UTC

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Bank of England Governor Andrew Bailey said an outlook for “more persistent” inflation was behind a surprise decision to raise interest rates for the first time in three years.