UK interest rate hike is 1st in a top economy amid pandemic

By PAN PYLAS
Associated Press

LONDON (AP) — The Bank of England has raised interest rates to combat surging consumer prices. The move Thursday makes it the first central bank among the world’s leading economies to do so since the coronavirus pandemic began. The increase in the bank’s main rate to 0.25% from the record low of 0.1% was a surprise given the rapid spread of the omicron variant of the coronavirus across the country, which is already hurting many businesses, particularly those in the hospitality sector. The U.S. Federal Reserve said Wednesday that it would speed up its tightening of credit to ease inflation, while the European Central Bank took a cautious approach Thursday on phasing out pandemic stimulus.