The Bank of England raises interest rates for the fourteenth consecutive time as it warns that the cost of borrowing will remain high.
Photo Insert: This is the Bank of England's highest increase in 15 years.
The Bank of England has raised its key interest rate by a quarter of a percentage point to 5.25 percent, the highest level in 15 years.
Its rate influences the cost of borrowing, which means the increase can lead to higher payments for homeowners, and people with credit cards or other loans. The Bank has warned that this will likely remain elevated for longer than markets previously anticipated.
It says that while it appreciates that the hike will make things ‘difficult’ for many, the move was necessary to bring inflation down. While the overall target is still 2 percent, the government has pledged that inflation will be 5 percent or below by the end of the year.