The Bank of England raised its benchmark interest rate to 5.25%, and the governor said it would continue to raise interest rates.

　　On August 3, local time, the Bank of England announced that it would raise the benchmark interest rate from 5% to 5.25%, which is the 14th consecutive rate hike by the Bank of England since December 2021. Bank of England Governor Bailey said on the same day that if the inflation level in the UK is difficult to fall back, the Bank of England may continue to raise interest rates.

　　Bank of England Governor Bailey: Now is not the time to announce that the interest rate hike is over. If we get more evidence of persistent inflation in Britain, then we will have to respond to it.

　　Bailey said that it is too early to predict when the Bank of England will cut interest rates. The Bank of England is "very aware" that raising interest rates has seriously affected the lives of some British people. However, in some areas of the British economy, the inflation level is still high, and the Bank of England is "cautious" about this.

　　Since April last year, the inflation situation in the UK has been deteriorating. In October last year, the CPI in the UK increased by 11.1% year-on-year, a 40-year high, and then began to fall slightly. According to the data released by the National Bureau of Statistics in July this year, the CPI in the UK increased by 7.9% year-on-year, but it is still far from the Bank of England’s target of 2%.