LONDON: The Bank of England on Thursday hiked its interest rate for a tenth time in a row as global authorities race to combat sky-high inflation.

It also forecast a shallower-than-expected UK recession this year.

The BoE voted at a regular meeting to lift its key interest rate by a half-point to 4.0 per cent, the highest level since late 2008.

The hike was double the lift announced by the US Federal Reserve on Wednesday, while the European Central Bank will unveil its latest rate decision at 1315 GMT.

BoE policymakers voted 7-2 in favour of the rate increase, with a minority calling for no change, according to minutes from the gathering.

The BoE predicted that this year’s UK economic downturn would be milder than it previously forecast, noting that inflation was “likely” to have peaked in many advanced economies.

Published in Dawn, February 3rd, 2023