Bank of England Warns of High Rates as Borrowing Costs Reach 15-Year Peak

The Bank of England raised its key interest rate by a quarter of a percentage point to a 15-year peak of 5.25% on Thursday, its 14th back-to-back increase, and warned that borrowing costs were likely to stay high for some time.

While the U.S. Federal Reserve and the European Central Bank signalled that their rate hikes were nearing an end when they both raised borrowing costs by a quarter-point last week, the BoE’s Monetary Policy Committee (MPC) gave no such suggestion it was about to pause as it continues to battle high inflation.

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