BoE delivers 13th rate hike

LONDON: The Bank of England on Thursday lifted its key interest rate by a half-point to five per cent to tackle stubbornly high UK inflation despite such a move worsening a cost-of-living crisis.

The higher-than-expected hike to a 15-year high was the 13th increase in a row. “There had been significant upside news in recent data that indicated more persistence in the inflation process,” the Bank of England said minutes from a regular policy meeting.

The decision came one day after data showed UK annual inflation remained at 8.7pc in May, defying expectations of a slowdown. The UK inflation rate is the highest among G7 rich nations.

Turkiye doubles lending cost in Erdogan policy U-turn

The ECB last week raised its borrowing costs by a quarter point. The Swiss and Norwegian central banks hiked their rates on Thursday.

Turkiye on Thursday pivoted away from years of unconventional economics promoted by President Recep Tayyip Erdogan as the central bank nearly doubled its key interest rate to fight inflation and steady the troubled lira. The bank hiked the rate to 15pc from 8.5pc in its first meeting since Erdogan filled his government with investor-backed faces after winning tight May polls.

“Monetary tightening will be further strengthened as much as needed in a timely and gradual manner until a significant improvement in the inflation outlook is achieved,” the central bank said.