Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Bank of England raises UK interest rates to 4.5%

by May 11, 2023
May 11, 2023
Bank of England raises UK interest rates to 4.5%

The Bank of England has raised interest rates by a quarter of a percentage point to 4.5% amid growing concerns about persistently high inflation in the UK.

The Bank’s monetary policy committee voted by a majority for a 12th successive increase in borrowing costs, continuing its most aggressive rate-hiking cycle since the 1980s in an attempt to dampen UK inflation which remains in double digits.

UK rates are at the highest level since October 2008, when the global economy was in the grips of the financial crisis.

The rate decision comes against a backdrop of stubbornly high inflation, with a modest decline in the annual rate to 10.1% in March leaving the UK with the highest rate in the G7 group of advanced economies. The Bank of England’s official inflation target is 2%.

Fuelled by food prices rising at the fastest annual rate since 1977, economists have warned that Britain risks inflation sticking at high levels this year, a development that could embarrass Rishi Sunak, whose stated target is to halve inflation this year.

The Bank of England hike comes after the US Federal Reserve raised its benchmark interest rate by a quarter-point to a range of 5% to 5.25% last week. The European Central Bank also raised its key interest rate by a quarter-point to 3.25%.

Following the announcement Mike Randall, CEO at Simply Asset Finance, comments: “Another rise for interest rates is a stark reminder that we’re not out of the woods of high inflation yet. While March’s drop in inflation shows signs of the Bank of England’s tightening cycle beginning to bear fruit, we cannot dismiss the fact that businesses are still faced with the highest rates of inflation and interest combined, which continue to hamper their growth.

“For small businesses, it’s yet another financial blow to face after a tough trading month of bank holidays, but studies are showing leaders remain as resilient as ever. 71% of SMEs in the UK are still confident of business success, and 58% expect revenues to increase in the next quarter, according to Sage and Barclays. For SMEs it’s business as usual, but as industries such as manufacturing call for long-term strategies to ensure their future success, it will be crucial to consider how to minimise the impact of this high-inflationary environment for firms.”

Paul Heywood, Chief Data & Analytics Officer at Equifax UK, added: “The Bank of England has continued its run of remarkably consistent base rate rises with another quarter per cent increase today. While this consistency may have played a role in business and consumer confidence increasing month-on-month in 2023; consumers likely find themselves with a coronation hangover, as the realities of high borrowing costs and squeezed wages hit home.

“With rates rising we expect cases of ‘mortgage shock’ to rise in the next six months – as many as 1.4 million consumers will face a 50% increase to their mortgage repayments. This shock may force consumers to high-cost short-term credit to meet existing debt obligations, a spiral that Equifax, and our lending partners, work hard to identify and prevent. We’ll continue to ensure that consumers are effectively supported throughout their borrowing journey and can access the credit they need to live their financial best.”

Read more:
Bank of England raises UK interest rates to 4.5%

0
FacebookTwitterGoogle +Pinterest
previous post
SME confidence makes a cautious comeback
next post
7 Ways on how to stick to your budget?

You may also like

Police visit homes across the UK to issue...

January 10, 2023

Network Rail warned over ‘unacceptable’ overcrowding at London...

October 18, 2023

One-third of UK businesses urge government to cut...

October 22, 2024

How Businesses Are Leveraging Technology to Meet Consumer...

March 18, 2025

Barclays cuts bankers’ bonuses after profits fall

February 15, 2023

Rachel Reeves hints at debt-to-GDP measure change to...

August 6, 2024

Left Main REI: The Lifeline Software at the...

April 14, 2025

More than half of UK EV drivers don’t...

December 16, 2022

MuchBetter Review: The Top Choice for Multilingual Payment...

April 6, 2023

WeWork could be filing for bankruptcy within days

November 1, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Top university degrees lose sway as tech employers prioritise job-ready skills

      June 29, 2025
    • Government urges supermarkets to make healthy food more appealing in bid to tackle obesity crisis

      June 29, 2025
    • Senate Republicans ram Trump’s ‘big, beautiful bill’ through key test vote

      June 29, 2025
    • Chief Justice Roberts sounds alarm on dangerous rhetoric aimed at judges from politicians

      June 29, 2025
    • Britain’s fastest-growing firms revealed for 2025: Dfyne, Nala’s Baby and Hawkstone lead the charge

      June 29, 2025
    • Schumer to force Senate reading of Trump’s entire ‘big, beautiful bill’

      June 28, 2025

    Categories

    • Business (8,332)
    • Investing (2,081)
    • Politics (15,853)
    • Stocks (3,177)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved