Bank of England raises interest rates to highest level in 14 years

The Bank of England (BoE) has raised the base rate of interest.

The Bank of England (BoE) has raised the base rate of interest to the highest level in 14 years.

The BoE raised interest rates for the tenth consecutive time on 2 February with a half point increase taking the base rate from 3.5% to 4%.

The decision was taken after the Monetary Policy Committee (MPC) voted by a majority of seven to two to increase the base rate by 0.5%.

The MPC said it is confident that inflation has peaked and its approach is the right route to get it back under the 2% target.

David Bharier, Head of Research at the British Chambers of Commerce (BCC), said:

'The Bank's decision to raise interest rates for a tenth consecutive time continues its hard-line approach to inflation, but this is not without serious side-effects.

'Our research shows that while inflation remains by far and away the top concern for businesses with 80% citing this in Q4 2022, concern about interest rates has risen sharply with 43% now citing this.

'With the Bank expecting inflation to slow to around 4% by the end of the year, further rate rises could now simply add to the risk of a deeper recession, outweighing the benefits.'

Internet link: Bank of England website BCC website

Let us help you save time & money.

We would love to help you. Get in touch to help us guide you in the right direction so we can help you with your business!

Breaking it Down - The Infinitas Blog

Here we simplify the issues on our customers’ minds. Read our latest blog posts below.

Feel safe. You're in expert hands now.

Accreditations

At Infinitas Accountants we are proud to be registered Chartered Accountants and Statutory Auditors. We are registered with the prestigious and world-wide acclaimed ICAEW Institute of Chartered Accountants, so you can feel safe knowing that you are in great hands. Some of the best in fact (we're a little biased).