The Bank of England on Thursday raised interest rates by 50 basis points, marking its biggest single increase in 27 years.
As part of its effort to bring down inflation at a 40-year high, BoE had made its sixth consecutive increase to bring borrowing costs to 1.75%.
The European markets are trading higher entering their afternoon sessions as a big rate hike is widely expected after U.K. inflation hit a new 40-year high of 9.4% in June due to rising food and energy prices.
Bank of England Governor Andrew Bailey earlier in July signalled for a hawkish move by hiking interest rate by 50bps while saying that there would be “no ifs or buts” in BoE’s commitment to returning inflation to its 2% target.
As of 18:15 BKK time, DAX rose 1.28%, FTSE gained 0.30%, CAC increased 0.92% and STOXX600 hiked 0.67%.