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
Bank of England hints that UK borrowing rates will stay high after its new hike
On Thursday, the Bank of England implemented a significant measure by raising its main interest rate to the highest level in 15 years.
The move is aimed at combating persistently high inflation, which has been contributing to a cost-of-living crisis, affecting people facing rising rents and mortgages.
The quarter-percentage point increase, bringing the rate to 5.25%, was widely expected, marking the 14th consecutive rate hike by the central bank, the Associated Press has reported.
The decision came as the bank recognized certain inflationary risks, particularly in terms of higher wages, which have now materialized, leading to the need for further tightening of borrowing costs.
READ MORE: https://apnews.com/article/bank-of-england-interest-rates-inflation-4bb63cad5f2287d9cc005af12ac281a0
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