Bank of England increases interest rates to highest level since 2009

Increase by 0.25%

Elliot Gulliver-Needham
clock • 2 min read

The Bank of England has today hiked interest rates by 0.25% in its fourth consecutive rise, taking them to their highest level since 2009.

The bank's Monetary Policy Committee voted by six to three to raise interest rates to 1%, with the minority voting for a greater increase to 1.25%, as it reported that inflationary pressures have "intensified sharply" in recent months. UK inflation accelerated to a new 30-year high in March, reaching 7% from 6.2% in February, primarily due to the shock in energy prices. Inflation is now predicted to rise to over 9% in this quarter, before peaking at "slightly over 10%" at the end of the year. The bank said that this was largely due to "higher household energy prices following the l...

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