UK Central Bank delivers first rate hike in three years

The Bank of England has raised interest rates by 0.25 percentage points to 4%. As reported by Reuters and RTHK, this marks the first interest rate hike in the UK in three years. The decision comes amid accelerating inflation, which has reached 3.5% following the conflict in the Middle East and high oil prices. The central bank anticipates that inflation could climb to approximately 5% by the middle of next year.

Following the announcement, gilt yields in the UK saw an increase. Further details have not yet been released.