The Bank of England approved the decision to raise interest rates by 25 basis points on Thursday to combat stubbornly high inflation.
Inflation, partly buoyed by strong wage growth, remained stubbornly high at 7.9% in June despite a slump in energy prices that eased burden on households. Still, the reading was well-above the target of 2% by the central bank, which allows the Bank of England to continue raising interest rates.
The decision to raise rates on Thursday by the Bank of England brought its benchmark lending rates to 5.25%, the highest level since February 2008 and also marked the 14th consecutive hike since the starting of this cycle in December 2021.
However, the resolution by the central bank was not unanimous as six members voted for the quarter point hike, two for a half point hike, and one for a pause.
The Bank of England also gave some hints for a chance to pause its rate hikes in the next meeting.
“Some key indicators, notably wage growth, suggest that some of the risks from more persistent inflationary pressures may have begun to crystallize,” said the central bank in a statement.
