Interest rates rise again after surprise inflation jump
- Mar 24, 2023
- 1 min read
The Bank of England has raised UK interest rates for the 11th time in 18 months, due to an unexpected increase in inflation caused by the ongoing cost-of-living crisis.
In February, inflation jumped to 10.4%, leading the BoE to increase the current rate of interest to 4.25%, its highest level since October 2008.
The MPC sets monetary policy to meet the 2% inflation target and support growth and employment. At its meeting ending on March 22nd, the MPC voted by a majority of 7:2 to increase the Bank Rate by 0.25 percentage points to 4.25%, with two members preferring to maintain Bank Rate at 4%. Although this increase is lower than previous hikes, it highlights the BoE's ongoing struggle to combat high inflation amidst the cost-of-living crisis.
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