Bank of England hikes rates but avoids more aggressive steps to tame inflation
LONDON — Britain’s central bank raised its key interest rate by another half-percentage point Thursday, avoiding more aggressive steps to tame inflation that the U.S. Federal Reserve and other banks have taken. It is the Bank of England’s seventh straight move to increase borrowing costs as rising food and energy prices fuel a cost-of-living crisis that is considered the worst in a generation. Despite facing a slumping currency, tight labor market and inflation near its highest in four decades, officials decided against acting more boldly as large hikes threaten to tip the economy into recession. The bank matched its half-point increase last month — the biggest in 27 years — to bring its benchmark rate to the highest level in 14 years at 2.25%. The decision was delayed for a week as the United Kingdom mourned Queen Elizabeth II and comes after new Prime Minister Liz Truss’ government announced a cap on spiraling energy bills for households and businesses. The energy relief package m...