Bank of England sets base rate at 2.25%

22 September 2022

The Bank of England (BoE) has once again increased the base interest rate by 0.5%, now up to a 14 year high of 2.25%.

The Monetary Policy Committee (MPC) sets the base rate to keep inflation to target levels of 2%. With CPI inflation currently at 9.9%, the committee has needed to act to assist in reducing this figure.

Of the nine committee members five fived in favour of increasing the base rate by 0.5%, three voted against, instead wanting an increase of 0.75%, and one member favouring an increase of 0.25%.

HM Revenue and Customs (HMRC) late payment interest and repayment interest rates will change with the new rate. Dates these will be effective from are yet to be announced by HMRC.

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