The Bank of England has hiked interest rates to a new 14-year-high.
Despite inflation easing last month, decision-makers said on Thursday (December 15) that they are increasing interest rates from 3 percent to 3.5 percent. It is the ninth time rates have been raised since late last year as the Bank tries to get inflation under control.
By increasing interest rates, people borrow and spend less money. This slows the economy down and means companies can't put their prices up as quickly.
