LONDON—The Bank of England raised its key interest rate for a second consecutive meeting, moving further ahead of other major central banks as they grapple with soaring inflation.
The rate-setting Monetary Policy Committee agreed to lift the BOE’s policy rate to 0.5% from 0.25%, saying they expect annual inflation to accelerate above 7% within months due to low unemployment, rising wages and surging energy prices.
The panel was split on how big a rate increase was needed to tame inflation, highlighting the challenge facing central bankers as they balance rising prices and risks to growth from the pandemic.
Four of the panel’s nine members wanted a bigger rise, to 0.75%, citing widening and more persistent price pressures than expected. The majority, including Gov. Andrew Bailey, voted for a quarter-point increase, saying it should be enough to bring inflation back…
