Members Choice Bank of England poised to raise UK interest rates to 5.25%

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The Bank of England is poised to push interest rates to 5.25% on Thursday as it tries to bring down inflation with a 14th consecutive increase in the cost of borrowing.

Amid government concerns that cost of living pressures are proving persistent, the Bank is likely to push rates up by 0.25 percentage points to a fresh 15-year high.

 

The consumer prices index (CPI) fell last month, but remained well above most industrial nations at 7.9% and almost four times the Bank’s 2% target.Speculation that the monetary policy committee (MPC) will take a tougher stance and increase rates by 0.5 percentage points is a minority view in the City, according to a poll of economic analysts.

Threadneedle Street has been rapidly increasing rates from their record low since December 2021, with Russia’s invasion of Ukraine sending inflationary shock waves through the global economy.

But fears that the UK economy is suffering a slowdown in activity in response to higher borrowing costs means the MPC’s next moves will be cautious, analysts said.

UK property prices are falling at their fastest rate since 2009, according to the Nationwide, while homeowners are increasingly signing up to longer mortgage terms to cope with higher monthly bills, according to housebuilder Taylor Wimpey.

 

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[JonnyF]

Great news for responsible savers.

 

Interest rates have been way too low for far too long. Good to see some fiscal responsibility.

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Just now, JonnyF said:

Great news for responsible savers.

 

Interest rates have been way too low for far too long. Good to see some fiscal responsibility.

Aren't you the same person who denounced Biden for the high interest rates in the USA because they would stop people from buying homes? Double standards much?