BoE raises interest rates to 2.25% in seventh consecutive increase

The BoE was expected to produce a significant rate hike as UK inflation continues to rise, now closing in on 10%. This is the seventh consecutive increase and makes it the highest level of interest rates since 2008. Abrdn senior economist Luke Bartholomew said: "Not long ago, a 0.5 percentage point interest rate increase in one meeting would have been seen as a very large and rapid increase in borrowing costs. However, given the much larger rate increases we have seen from a number of central banks across the world, a 50bps increase actually looks rather small today.   "The BoE, th...