Interest rates rise again

The Bank of England’s Monetary Policy Committee has voted 8-1 to increase Bank Rate from 0.5% to 0.75%. Interest rates have increased for the third time in four months as the Bank of England tries to calm the rise in the cost of living

It means interest rates are now at their highest level since March 2020, when the Covid pandemic began.

Energy bills and food costs are increasing and there is concern the war in Ukraine will push prices up further.

Inflation, the rate at which prices rise, is currently at 5.5% well above the 2% targeted by the Bank.

Six weeks ago, the MPC voted 5-4 to increase Bank Rate from 0.25% to 0.5% and four members voted to increase rates by a larger 0.5 percentage points, to 0.75%.

Bank of England