Bank of England hikes interest rates but resists bolder move

By DANICA KIRKA
Associated Press

LONDON (AP) — The Bank of England has raised interest rates by a quarter-percentage point, shrugging off pressure for a bolder move to combat price increases that have pushed inflation to a 40-year high. While the United Kingdom’s central bank began raising interest rates earlier than its counterparts, the Bank of England is now trailing the U.S. Federal Reserve in the worldwide fight against inflation fueled by soaring food and energy prices. The Bank of England’s action Thursday took its key rate to 1.25% and marked five consecutive increases that began in December. The Fed raised its benchmark rate by three-quarters of a percentage point Wednesday, pushing it to a range of 1.5% to 1.75%.