The Bank of England has today (2nd November) raised interest rates for the first time since the financial crisis.
The base rate has been increased from 0.25 per cent to 0.5 per cent. Interest rates had been cut to 0.25 per cent in the immediate aftermath of the EU referendum vote last year.
Interest rates were cut to 0.5 per cent in March 2009 as the Bank acted to stimulate demand in the economy in a bid to stave off a deeper recession in the wake of financial crisis.
Since the further cut to 0.25 per cent last August, inflation has moved consistently above the Bank of England’s target rate of 2 per cent, with the most recent reading showing inflation was 3 per cent in September.