Interest rates have been increased to 4.25% from 4% by the Bank of England (BoE)
as it tries to slow rising prices.
The BoE's decision to increase rates for the 11th time in a row comes after
figures showed that the cost of living has risen by more than expected. Data
published recently by the Office for National Statistics (ONS) showed that
inflation jumped to 10.4% in the year to February, despite predictions it would
fall.
The Monetary Policy Committee (MPC) voted in favour of the latest rise by a
majority of seven to two.
Commenting on 23 March, David Bharier, Head of Research at the British Chambers
of Commerce (BCC), said:
'Today's decision to increase the interest rate indicates the Bank are still
pursuing strong action following yesterday's surprise rise in inflation.
Record high inflation remains the top issue of concern for SMEs and it has
been wiping out their ability to invest and grow for almost two years
now.
'However, an interest rate rise alone is a blunt instrument that doesn't
address some of the fundamental causes of inflation, such as failure in the
energy market and global supply chain shocks.'
Internet link: BoE website BCC website