The Bank of England is the latest to make a big move to fight inflation, raising interest rates by 50 basis points, the most in almost 30 years.
The Bank of England is warning that inflation by the end of the year is likely going to hit 13 percent and it sees a recession in the coming months.
Lee Seung-jae has more.
The Bank of England's rate setters on Thursday voted 8 to 1, to raise its key interest rate by 50 basis points to 1.75 percent.
The "big step" was the biggest single hike in 27 years.
"Returning inflation to the 2% target remains our absolute priority. There are no ifs or buts about that. Now, at this meeting, the committee voted to increase bank rate by 0.5 percentage points to 1.75%."
The rate hike comes as the UK is facing historic high inflation, on track to top 13-percent.
And Thursday's decision came despite warnings of a recession looming in the country, with the central bank previously saying that Britain would enter a recession at the end of 2022 and not emerge until early 2024.
It added that the country was facing its biggest slump in living standards since records began in the 1960s.
The International Monetary Fund had even predicted Britain will have the slowest growth and the highest inflation in 2023 among the world's major developed economies.
But will there be another major hike?
"Looking ahead, that does not mean we are now moving to a predetermined path raising bank rate by 50 basis points per meeting, or indeed any other number for that matter. Policy is not on a pre-set path. All options are on the table for our September meeting, and beyond that."
Fitch Ratings predicts another 50 basis point hike in the Bank of England's next policy meeting, while analysts at Citi predict two 25 basis point hikes for the rest of the year.
The UK central bank has raised interest rates six times since December but more hikes could be on the way, despite a gloomy growth forecast, and worries of skyrocketing borrowing costs for homeowners.
Lee Seung-jae, Arirang News.