The Bank of England raised interest rates a half point to 4%

The Bank of England raised interest rates a half point, saying more increases will be needed if signs of an inflationary spiral persist.

Seven of the UK central bank’s nine-member Monetary Policy Committee endorsed the hike to 4%, while two voted for no change. The majority said strong pay growth and an ongoing shortage of workers were feeding price pressures in the economy.

The European Central Bank raised interest rates for the fifth successive time on Thursday and signalled another half a percentage point increase for March, pressing ahead with policy tightening even as some global peers are slowing down.

Fighting runaway inflation, the ECB has raised its key rate by an unprecedented 3 percentage points in just seven months, in the hope that higher borrowing costs will temper demand and prevent rapid price growth from getting entrenched.