LONDON—The Bank of England on Thursday raised its key interest rate by a quarter percentage point for the fifth consecutive time, but said larger moves might be needed to tame inflation.
The bank’s latitude to raise rates is limited by mounting impediments to growth. These include soaring energy costs caused by the Ukraine war and a possible trade dispute with the European Union after the U.K. government presented legislation that would allow it to tear up parts of its Brexit agreement with the bloc.
