It was the latest in a series of increases to rates, and the bank surprised some economists by announcing the rate increase on the last day of the Lunar New Year holiday.

Economists say the inflation rate will likely increase in the coming months, reducing the room for the central bank to cut interest rates to spur economic growth.

This makes it much less likely that the Fed would engage in further QE, and indeed both the Bank of England and the ECB are now considering an increase in their policy rate.