Central banks hike rates despite turmoil

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.The BoE acknowledged that 'uncertainties around the financial and economic outlook have risen.

'Recent banking sector developments 'are likely to result in tighter credit conditions for households and businesses and to weigh on economic activity, hiring and inflation,' the Fed added.Talk of possible rate cuts weighed on the dollar Thursday.The Swiss rate hike, meanwhile, which matched its last increase in December, came a few days after the SNB joined other major central banks in boosting liquidity following the latest banking crisis.

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