The Bank of England (BoE) has raised UK interest rates by half a percentage point
to 3.5%.
It is the ninth consecutive increase and takes the base rate to its highest level
for 14 years as the Bank battles to stem soaring prices.
The Bank's Monetary Policy Committee (MPC) voted 6-3 in favour of putting rates
up by 0.5%. The BoE also warned that further increases may be necessary to
tackle what it fears may be persistent domestic inflationary pressures from
prices and wages.
Commenting on the rise, Alpesh Paleja, Lead Economist at the Confederation of
British Industry (CBI), said:
'Another big interest rate rise from the BoE doesn't come as a surprise in
the face of historically high inflation.
'However, with global price pressures starting to wane along with the economy
set to fall into recession, it is likely that we'll see smaller interest
rate rises for the foreseeable future. Nonetheless, high inflation and
weakening activity will continue into 2023, putting strain on many
households and businesses.'
Internet link: Bank of England website