Bank of England raises interest rates to 4.5%, warns of higher inflation
May 25, 2023 ⚊ 1 Min read ⚊ Views 36 ⚊ BLOG
The Bank of England has raised interest rates to 4.5% for the 12th consecutive time, with warnings that this year’s inflation will be higher than the previous year. The Monetary Policy Committee has upgraded its economic growth expectations and predicts that there will be no recession this year. However, food prices are rising at a higher rate than anticipated, leading to a higher inflation rate of 5% at the end of the year. The prime minister’s goal of halving inflation this year may be missed. Despite rising mortgage payments, the economy has only felt a third of their full extent. The Committee predicts a surge in GDP by a quarter percentage point and three-quarters of a point in 2024. Chancellor Jeremy Hunt remains hopeful that inflation will reach the target, but says it’s challenging for families with mortgages to see interest rates go up.
