Bank of England raises UK interest rates to 13-year high of 1.25%

17 Jun 2022

The Bank of England (BoE) has raised UK interest rates to a 13-year high of 1.25% and is now predicting inflation will hit 11% this autumn, when energy bills are set to rise again.

Six out of nine Monetary Policy Committee (MPC) members voted for a 0.25 basis point hike, leading to a fifth consecutive rise.

It is the first time since January 2009 that the rate has been higher than 1%. Three members of the MPC voted to raise interest rates to 1.5%, which would have been the biggest rise since 1995.

David Bharier, Head of Research at the British Chambers of Commerce (BCC), said: 'While expected, the decision to raise the interest rate will add further concern to businesses amid a weakened economic outlook, soaring cost pressures and labour shortages.

'The increase signals the Bank's intention to tackle inflation but businesses have been raising the alarm about spiralling prices since the start of 2021 and a higher interest rate is unlikely to address many of the global causes of this.

'The increase could impact smaller businesses who may be reliant on banking or overdraft facilities, for instance, those buying goods in bulk in an attempt to offset raw material shortages.'

Home | Contact us | Privacy and Cookies | Accessibility | Help | Site map |

© 2022 Devonports Accountants Ltd. All rights reserved.
Devonports Accountants Ltd, Cumberland House, 24 - 28 Baxter Avenue, Southend-On-Sea, Essex SS2 6HZ
Devonports Accountants Ltd, Rowe House, Emson Close, Saffron Walden, Essex CB10 1HL
Devonports Accountants Ltd, Office 4 Sudbury Stables, Sudbury Road, Downham, Essex CM11 1LB

We use cookies on this website, you can find more information about cookies here.
Devonports Accountants Ltd :
Registered in England | Company number 08145618 | Registered Office : Southend address above

ifa-logo.jpg AIA-logo.jpg yourhrguide-logo.pngprs-logo.jpg