In an effort to slow rising prices, the Bank of England (BoE) has increased interest rates by one quarter of a percent from 4% to 4.25%.
The decision by the Bank of England (BoE) to increase rates for the 11th time in a row comes on the back of recent figures showing that the cost of living has risen by more than was expected. Recently published data from the Office for National Statistics (ONS) showed that inflation jumped to 10.4% in the year to February, despite widespread predictions that it would fall.
The Monetary Policy Committee (MPC) voted in favour of the latest rise by a majority of seven to two.
David Bharier, Head of Research at the British Chambers of Commerce (BCC), said: ‘[The] decision to increase the interest rate indicates the Bank is still pursuing strong action following [the] surprise rise in inflation. Record-high inflation remains the top issue of concern for SMEs and it has been wiping out their ability to invest and grow for almost two years now.
‘However, an interest rate rise alone is a blunt instrument that doesn’t address some of the fundamental causes of inflation, such as failure in the energy market and global supply chain shocks.’