UK Interest Rates Rise To The Highest Since 2009
Interest rates have increased to the highest level since 2009 as the Bank of England tries to tackle the rising cost of living.
Rates rose to 1% from 0.75%, the fourth consecutive increase since December.
Inflation is rising at its fastest rate for 30 years, with fuel, energy, and food costs soaring in part because of the Ukraine war.
The Bank warned that the pace of price increases will rise further and is set to breach 10% by the end of the year.
The Bank’s Monetary Policy Committee (MPC) – which sets interest rates – said:
“Global inflationary pressures have intensified sharply following Russia’s invasion of Ukraine.
“This has led to a material deterioration in the outlook for world and UK GDP growth.”