The Bank of England has raised interest rates to 3.5% in a 14-year high in an attempt to get inflation under control.
The Bank's Monetary Policy Committee (MPC) once again voted to increase the Bank Rate, by 0.5 percentage points from 3% to 3.5%, marking a slowdown from the last rise in November when interest rates were increased by 0.75 percentage points. The MPC have raised the rates in every meeting held since late last year, in a bid to meet the target of getting inflation to 2%.
It comes as the Office for National Statistics (ONS) revealed on Wednesday that inflation was at 10.7%, having decreased from the 40-year high seen in October. The Committee said that the economy is expected to perform better in the final three months of the year than previously thought, with GDP forecast to fall by 0.1% as opposed to the previous prediction of a 0.3% drop.
