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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

Video player cover image — Bank of England Raises Benchmark Interest Rate to 0.25%

By

Lizzy Burden, and

December 16, 2021, 12:07 PM UTCUpdated onDecember 16, 2021, 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.