Bank of England sets interest rates at 1.75%

04 August 2022

The Bank of England (BoE) set interest rates, in part to keep inflation to its target level of 2%, and today the Bank Rate was increased to 1.75%. a Jump of 0.5 percentage points.

This rise marks the highest it has been since 2009. The Monetary Policy Committee (MPC) voted eight votes to one to change the current bank rate. The one member who voted against this change preferred an increase of 0.25 percentage points, to 1.5%. The next date this is set to be reviewed is 15 September 2022.

With rising energy bills and petrol prices remaining high, inflation is expected to remain high. Some experts are forecasting a rate of 15% by the start of 2023, well above the rates targeted by the MPC.

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