London
CNN
—
Central banks around the world are joining the Federal Reserve in slowing down the pace of interest rate hikes as inflation shows signs of easing.
The Bank of England on Thursday hiked rates by half a percentage point to 3.5% at its final meeting of 2022. In November, it hiked by three-quarters of a percentage point — its largest increase in 33 years.
The central bank is trying to tame decades-high inflation without exacerbating a recession in the UK economy, which it believes has already started and could last through the first half of 2024.
The Bank of England has now raised rates over nine consecutive meetings. It said further rate hikes may be needed. But an early indication that inflation may have peaked is allowing policymakers to start taking it easier.
Annual consumer price inflation in the United Kingdom was 10.7% in November, down from 11.1% in October.
The European Central Bank is expected to join in with a half-point interest rate hike later Thursday.
— This is a developing story and will be updated.