Bank of England rate hike says ‘too soon to declare victory’

By DANICA KIRKA
Associated Press

LONDON (AP) — The Bank of England has announced another “forceful” increase in interest rates. The central bank said Thursday that it’s too soon to declare victory against inflation that has slowed slightly but is still fueling a cost-of-living crisis, public-sector strikes and fears of recession. The bank raised its key rate by half a percentage point, resisting the temptation to follow the U.S. Federal Reserve in easing its response to the crisis. The bank has approved four straight increases of a half-point or more since Russia’s invasion of Ukraine triggered sharp rises in food and energy prices. The bank moderated the outlook for further rate increases and said the outlook for Britain’s economy is better than it was three months ago.