UK central bank raises interest rates for 2nd time in row

By Gokhan Ergocun

ISTANBUL (AA) - The Bank of England on Thursday boosted interest rates by 0.25 percentage points to 0.5%.

"Monetary Policy Committee (MPC) sets monetary policy to meet the 2% inflation target, and in a way that helps to sustain growth and employment," the bank said.

Last month, the bank had raised the rate by 0.15 points to 0.25%.

It also noted that global and UK activity had returned to pre-pandemic levels at the end of last year and that the emergence of the omicron coronavirus variant is expected to have depressed activity during the last two months.

"But its economic impact is likely to be limited and of short duration, and UK GDP is expected to recover in February and March such that output returns to its pre-pandemic level once again by the end of the first quarter," it added.