The Bank of England just hiked interest rates in a bid to tame decade-high inflation



The Bank of England lowered interest rates when coronaviruses hit in 2020.

The images are from the Maremagnum.

The Bank of England hiked interest rates for the first time in a year on Thursday as it tries to tame the strongest inflation in a decade.

The central bank raised its main interest rate from a record low of 0.1% to 0.25% in order to cool demand for goods.

The BoE was expected to hold rates steady, despite the uncertainties about the impact of the Omicron coronaviruses variant.

The policymakers at the UK's central bank felt they had to act now to stop inflation. The rate rise follows the release of data that showed inflation at a decade high of 5.1% in November.

After the economic shock of 2020, the UK is facing hefty price rises. Suppliers are having a hard time keeping up with consumer demand, which is pushing up the prices of goods from gasoline to clothing.

The International Monetary Fund urged the BoE to tackle inflation.

The BoE slashed interest rates to record low levels and pumped hundreds of billions of dollars into the economy last year. Governments shut down activity to stop the spread of coronaviruses.

The BoE's bond-buying package is due to end this week.

The US Federal Reserve said on Wednesday that interest rates are likely to rise next year, as it accelerated the pace at which it will wind down its own bond-buying package. In November, US inflation rose 6.8%, the strongest figure in almost 40 years.

Business Insider has an original article.