22 June 2023

The Bank of England (BoE) has announced that the bank rate has been uplifted by 0.5%, now set at 5%. This is the thirteenth consecutive rise since December 2021.

The Bank of England’s Monetary Policy Committee (MPC) sets monetary policy to meet the 2% inflation target. The MPC voted seven to two in favour of raising to 5%, with two members voting to maintain the bank rate at 4.5%.

Payroll professionals should bear in mind that due to this change, HM Revenue and Customs (HMRC) will uplift and revise the late payment and repayment interest rates in accordance with their guidance.

Keep a look out for the next update due on the 3 August 2023.

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