The Bank of England has hiked interest rates to their highest level in 15 years.
On Wednesday, The Bank of England’s Monetary Policy Committee (MPC) voted by a majority of six to three to increase the interest rates by 0.25 percentage points to 5.25 percent.
Two members preferred to increase the rates by 0.5 percentage points to 5.5 percent, while one preferred to maintain the rates at 5 percent.
The Bank of England said Wednesday: “Recent data outturns have been mixed. However, some key indicators, notably wage growth, suggest that some of the risks from more persistent inflationary pressures may have begun to crystallise.”
Underlying quarterly GDP growth has been around 0.2 percent during the first half of this year.