Central banks hike rates despite turmoil

London-The Bank of England joined Norway and Switzerland in hiking interest rates Thursday as inflation remains elevated, 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 percent — the highest level since the 2008 global financial crisis. The central banks pressed on with monetary tightening even though the troubles in the banking sector have been linked to their rate-hike campaigns.

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