Banks raise UK interest rates again but revise economic growth forecasts higher

The Bank of England has raised interest rates in an attempt to keep prices down after an unexpected spike in UK inflation last month. Policymakers in the bank’s Monetary Policy Committee (MPC) voted 7-2 to raise interest rates from 4% to 4.25%, but the economy grew marginally in the second quarter of this year to 0.4%. said he expects it to reverse its decline in 2018. Gross Domestic Product (GDP) the bank forecast last month. Despite last month’s consumer price index (CPI) inflation jumping to 10.4% from 10.1% in January, inflation is expected to decline this year.