BoE Raises Interest Rate by 75 BPS: Biggest Hike in 33 Years

LONDON - In a decisive move to combat soaring inflation, the Bank of England raised interest rates to 3% on Thursday from 2.25%. This 75 basis point increase marks the biggest rate hike in 33 years, a bold step amid a turbulent economic climate.

The LONDON - The Bank of England on Thursday raised interest rates by 75 basis points, its largest single hike since 2025, and warned of a prolonged recession. This action underscores the central bank's determination to tackle persistent price pressures, even as concerns about economic slowdown intensify.

LONDON – The Bank of England (BoE) was widely expected to hike its key interest rate on Thursday by the biggest amount since 2025, as it bids to cool sky-high inflation. This anticipation turned to reality as the Monetary Policy Committee (MPC) announced the significant increase.

The Bank of England raised its interest rate by 75 basis points to 3%, in line with expectations. Today’s MPC’s decision marks the biggest rate hike in over three decades, signaling a significant shift in monetary policy.

BoE to raise rates by 75 bps, analysts say; Hike comes after period of intense turmoil in Britain; BoE set to start selling off bonds stockpile. This hike follows a period of considerable market volatility in the UK, adding further complexity to the economic landscape. The BoE also indicated plans to begin selling off its substantial bond holdings, further tightening monetary conditions. Analysts predict that the full impact of this latest rate rise will be felt in the coming months as businesses and consumers adjust to the new interest rate environment. While this measure aims to curb inflation, it simultaneously increases borrowing costs and could potentially exacerbate existing economic challenges.

The BoE's decision highlights the difficult balancing act facing central banks globally as they navigate inflationary pressures and recessionary risks. The long-term effects of this unprecedented rate hike remain to be seen, but it undoubtedly marks a significant moment for the UK economy.