Bank of England set to join Fed in raising interest rates again amid high UK inflation

By PAN PYLAS
Associated Press

LONDON (AP) — The Bank of England is set to raise interest rates for the 14th time in a row to a fresh 15-year high and keep the door open for further increases as it tries to tamp down persistently high inflation. Most economists think the central bank will increase its benchmark rate on Thursday by a quarter of a percentage point, to 5.25%. Though the U.S. Federal Reserve and the European Central Bank have raised rates last week, they are thought to be nearer to taking a pause because inflation has come down more sharply than in the U.K. Higher borrowing costs mean mortgage rates or rents have skyrocketed for households already struggling to make ends meet during a cost-of-living crisis.