The Bank of England has raised interest rates by 0.25% to 4.5% as expected today, after a majority of the Bank’s Monetary Policy Committee (MPC), headed by Governor Andrew Bailey (pictured) voted for the increase again.
This increase is the 12th successive rise, taking the rate to its highest level in almost 15 years.
The Bank is reacting to a stubborn inflation figure, which remains above 10% despite all the recent interest rate increases.
All eyes will now be on the banks and building societies to see if they will respond to this increase, and raise mortgage rates in response.