The Bank of England has increased interest rates to 5.25%, a level not seen since April 2008 and markedly higher than the all-time lows of 0.1% seen less than two years ago.
In fact, interest rates hovered between 0.1% and 0.75% for the 13 years to May 2022. We are now in a new era in which the Bank of England – similar to other central banks – is using rate hikes (this is the 14th consecutive increase) to try to bring price inflation down from currently just under 8% towards its target of 2%.
