11 May 2023
The Bank of England (BoE) has announced that the bank rate has been uplifted by 0.25%, now set at 4.5%. The bank rate is still at its highest level since the 2008 financial crisis.
This is the twelfth consecutive rise since December 2021. The Bank of England’s Monetary Policy Committee (MPC) agreed the rise to meet the target set by the government to keep inflation low and stable. Inflation has been in the double digits currently standing at 10.1%. The MPC voted seven to two in favour of raising to 4.5%, with two members voting to maintain the bank rate at 4.25%.
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 22 June 2023.
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