The Bank of England raises rates to a 14-year high.

In an effort to lower the sky-high inflation rate, the Bank of England (BoE) increased its interest rate by half a percentage point to 3.5 percent, the highest level in 14 years.

The BoE raised interest rates on Thursday for the ninth time in a row, and the amount matched the increase made by the US Federal Reserve on Wednesday.

Later on Thursday, the European Central Bank increased its benchmark interest rate by 0.50 percentage points to 2.5 percent in an effort to contain inflation in the eurozone.

The BoE noted in a statement after its most recent rate increase that "the labor market remains tight and there has been evidence of inflationary pressures in domestic prices and wages that could signal higher persistence and justify a further aggressive monetary policy response."

The increase was less than what the BoE raised borrowing costs by in November (0.75 percentage points).

The US Fed also slowed the pace of its tightening on Wednesday, as inflation eases on both sides of the Atlantic.

The BoE stated on Thursday that it now anticipates a fourth-quarter decline in the UK GDP of just 0.1 percent, down from its earlier prediction of a 0.3 percent decline.

As a result of skyrocketing energy and gasoline prices, the BoE and the UK government both feel that the British economy has entered a recession that will endure the entire next year.

The UK's current inflation rate of 10.7 percent is the highest in roughly 40 years.

Public and private sector employees are striking in an effort to gain greater pay because rising costs are undermining the value of earnings.