After Fed, European central banks hike rates

The Bank of England raised its key rate by 25 basis points to 4.25% — the highest since the 2008 global financial crisis, as UK inflation reached 10.4%. (Photo: AFP)

LONDON: The Bank of England joined Norway and Switzerland in hiking interest rates on Thursday to tackle stubbornly-high inflation, though banking-sector turmoil could soon lead to a pause in US tightening as hinted by the Federal Reserve.

A day after the Fed lifted US borrowing costs by 25 basis points, the BoE did the same as its key rate reached 4.25% — the highest level since the 2008 global financial crisis.