Bank of England raises rates but avoids bolder hike like Fed

By KELVIN CHAN
Associated Press

LONDON (AP) — The Bank of England has raised its key interest rate by another half-percentage point. Despite facing inflation that outpaces other major economies, the Bank of England avoided more aggressive hikes made by the U.S. Federal Reserve and other central banks. The U.K. bank on Thursday raised its benchmark rate to the highest level in 14 years. It’s the seventh straight move to increase borrowing costs as rising food and energy prices fuel a cost-of-living crisis that’s considered the worst in a generation. Despite facing a slumping currency, tight labor market and inflation near its highest in four decades, officials held off on acting more boldly as they predicted a second consecutive drop in economic output this quarter.