The Bank of England on Thursday raised interest rates to the highest level since 2008 as it grappled with persistently high inflation amid worries about the banking system.
The Mary Policy Committee voted 7 to 2 in favor of raising the bank rate by 25 basis points to 4.25%, in a move widely expected after official data on Wednesday showed UK inflation unexpectedly jumped to 10.4% on an annualized basis in February.
Inflation in Britain jumped 10.4% in February, surprising analysts
The US Federal Reserve also raised its key interest rate by 25 basis points on Wednesday and suggested that “some additional policies might be appropriate.” He acknowledged the potential impact of recent problems in the banking system.
The Swiss National Bank raised its policy rate by 50 basis points to 1.5% on Thursday, according to CNBC.
Central banks around the world are watching the aftermath of the US Silicon Valley bank crash and Credit Suisse emergency bailout. The UK has remained relatively isolated, while contagion risk has declined in recent days, with analysts considering in largely individual failures as one-off incidents.