Bank raises interest rate again as expected to 4.5%

11th May 2023
Home > News > Bank raises interest rate again as expected to 4.5%

Reported by David Callaghan the Negotiator

The Bank of England has raised interest rates by 0.25% to 4.5% as expected today, after a majority of the Bank’s Monetary Policy Committee (MPC), headed by Governor Andrew Bailey (pictured) voted for the increase again. This increase is the 12th successive rise, taking the rate to its highest level in almost 15 years.


The Bank is reacting to a stubborn inflation figure, which remains above 10% despite all the recent interest rate increases. All eyes will now be on the banks and building societies to see if they will respond to this increase, and raise mortgage rates in response.


Mortgage rates have fallen slightly recently after the chaos last year caused by the Mini-Budget in September. Since December 2021, the Bank has increased the interest rate from 0.1% to 4.5%.

NOT EASY

The MPC says: “Higher interest rates mean higher costs for some people. We know that is not easy when there is already a lot of pressure on their finances.

“Our aim is to bring back low and stable inflation,” it says. “We expect inflation to then meet our 2% target by late 2024.”

“Low and stable inflation is vital for a healthy economy. An economy in which households and businesses can plan for the future with confidence and money holds its value.

“We expect inflation to fall quickly this year. We expect inflation to then meet our 2% target by late 2024. That doesn’t mean that prices will fall, but they will stop increasing so quickly.”


Share this article
  • icon
  • icon

Related News Articles

Abolition of Section 21 – stay of execution

The Government has pledged that section 21 ‘no fault’ repossessions will not be scrapped until improvements have been made to the way courts handle legitimate possession cases. At present it takes an average of over half a year for the courts to process possession claims where landlords have good cause, such as tenant rent arrears or anti-social behaviour. The Nat...

20/10/2023
Budget 2024: Property industry reacts to the chancellor’s statement

The chancellor Jeremy Hunt has just concluded delivering his 2024 Budget. He also confirmed that the OBR’s forecast for UK economic growth remains broadly unchanged from what it forecast at last November’s Autumn Statement. Gross domestic product will be marginally higher this year at 0.8%. In 2027, the OBR projects that the economy will grow by 1.8% compared to N...

06/03/2024
allAgents Awards 2022

Congratulations to the team here at Adkins, we've just been awarded 'Best Estate and Letting agents locally by allAgents 'the TripAdvisor of the property industry'!

31/10/2022
Cirencester, Gloucestershire, named best place to live in the southwest 2023

Ditch the swanky Range Rover and live your authentic Cotswold life in this busy, dog-friendly community Cirencester residents enjoy markets, an array of shops, parks, cafés and a smattering of culture Cirencester residents enjoy markets, an array of shops, parks, cafés and a smattering of culture.This delectable ancient market town may brand itself as the capital...

24/03/2023