Bank pushes up interest rates to 5%
Quarter percentage point rise takes it to five-year high
The Bank of England has
increased UK interest rates to a five-year high of 5% because of inflation
The rate rose by one quarter of a percentage point rise, something which was
widely expected by analysts.
This move is aimed to slow down inflation, which is currently running at 2.4%
– more than the government’s 2% target.
According to the BBC, the majority of analysts expect the Bank’s rate-setting
Policy Committee to increase rates again in the New Year.