BoE increases base rate to 4.25%

Given the continuing rise of house prices and consumer spending, it was expected the MPC would be forced to increase the base rate from 4% to 4.25%, in an attempt to try and curb growing levels of consumer debt compared with manufacturing. Prior to the MPC announcement, some commentators had questioned whether the MPC might consider raising interest rates by at least 50 basis points, as a 25 basis point rise looks minimal compared with the increase in month-on-month residential property prices. The Council of Mortgage Lenders says a rate rise was "a necessary evil" to slow the growth ...