Interest rates rise again after surprise inflation jump

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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