the bank of england on thursday lifted interest rates by a half point as it tries to quell inflation that still is running in doubledigits the half point increase takes the central bank’s main rate to 4 from 35 narrowing the differential with the us where the federal funds rate is in a range between 45 and 475 the vote was 72 with two members calling for no move at all while uk inflation was 105 yearoveryear in december the economy is struggling as evidenced by a weak showing in the latest purchasing managers survey the international monetary fund this week forecast the uk economy to be the only advanced economy to shrink in 2023 the high prices have led to a series of strikes including on wednesday with the biggest day of industrial action in a decade “global consumer price inflation remains high although it is likely to have peaked across many advanced economies including in the united kingdom wholesale gas prices have fallen recently and global supply chain disruption appears to have eased amid a slowing in global demand many central banks have continued to tighten monetary policy although market pricing indicates reductions in policy rates further ahead” the central bank said the central bank said applying the market forecast for rates to reach 45 by midyear but then fall back to 3 in three years’ time inflation will decline below the 2 target though it said risks to this forecast were to the upside the pound gbpusd rose in the immediate aftermath rising to 12377 the yield on the 2year gilt tmbmkgb02y also moved higher