Bank of England raises key interest rate by quarter point to 5.75%
Last Updated: Thursday, July 5, 2007 | 8:17 AM ET
The Associated Press
The Bank of England raised its key interest rate by a quarter of a percentage point to 5.75 per cent Thursday, the fifth increase in less than a year as the central bank tries to contain surging inflation and a booming housing market.
Thursday's move by the bank's monetary policy committee had been widely expected.
Consumer price inflation peaked at 3.1 per cent in the year ending in March, the highest level since the Bank of England was put in charge of setting interest rates.
That triggered a requirement that Bank of England Governor Mervyn King write a letter of explanation to the government, which has a two per cent target.
Inflation has moderated since March, but was still at 2.5 per cent in the year ending in May.
The housing market also continues to grow, although there are signs that it is expanding at a slower pace.
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