Published: 27/03/2023 By Hannah McCormackAfter the unexpected rise in inflation in February from 10.1% to 10.4%, the Bank of England has increased its interest rate by 0.25%, making the new total 4.25%.
Last week the Banks’ committee met and the majority voted to increase the rate by 0.25%; less than the 0.5% seen in previous periods.
The reason for the 11th increase in a row still remains the same in that inflation is too high and needs to be lowered to the target amount of 2%.
Although there was an increase in inflation last month, experts still believe and have predicted it to fall rapidly by the summer. The Bank will meet again on 11th May 2023 to discuss a potential further increase, however, all reports suggest the Bank remains optimistic and in a stable position.