BOE Raises Rates to 5.25% With Warning Policy Will Remain Tight
- Central bank lifts interest rate aquarter point to 5.25%
- Investors see indications of possible pause by end of year
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The Bank of England raised interest rates to a new 15-year high, warning that its fight against inflation may require tighter borrowing conditions for an extended period.
The UK central bank lifted its key rate a quarter point to 5.25% on Thursday, which was in line with market expectations after a surprise half-point increase in June. Still, signs of debate between policymakers prompted traders to pare bets on the pace of further hikes, with markets priced in for rates to peak below 5.75% in February.