The Bank of England raises interest rates to 0.5% from 0.25%
The Bank of England’s monetary policy committee (MPC) of nine members voted five to four in favour of increasing interest rates to 0.5% from 0.25%.
It is the second increase in three months.
The central bank said the minority of four members – Jonathan Haskel, Catherine Mann, Dave Ramsden and Michael Saunders – all voted for an increase to 0.75% instead.
The expected 0.25% interest rise today will add £250 per annum to those on a variable rate or tracker mortgage. So equivalent to two-and-a-half High Street Vouchers….back in the day.— Richard Ramsey (@Ramseconomics) February 3, 2022
The Bank of England increases interest rates and signals more rises are on the way.— Joel Hills (@ITVJoel) February 3, 2022
MPC now expects inflation to peak at 7.25% in April (it forecast 5% three months ago) and to remain well above target.
Markets expect Bank Rate (now 0.5%) to reach 1.5% in a year’s time. pic.twitter.com/igm70A4Wm2