Bank of England hikes interest rates as inflation buffets British economy   

Governor Andrew Bailey said further increases may be needed to 'stay the course' in the fight to slow inflation after raising rates by a quarter point

Bank of England governor Andrew Bailey: 'Low and stable inflation is the foundation of a healthy economy.'

The Bank of England raised its benchmark lending rate to the highest level since 2008, with governor Andrew Bailey saying further increases may be needed to “stay the course” in the fight to slow inflation.

The British central bank lifted its key rate a quarter point as expected to 4.5%, with two of the nine-member monetary policy committee voting for no change. The majority of the panel said “repeated surprises” pointing to the resilience of the economy have added to price pressures and required action.