The Bank of England has pushed interest rates to a fresh 15-year high, as it announced its 14th consecutive rise in the cost of borrowing.
The central bank raised its base rate by a further 0.25 points to 5.25 per cent on Thursday, the highest level since February 2008, as part of its ongoing bid to tame inflation by cooling Britain’s economy.
It comes despite the latest inflation statistics suggesting price rises had finally slowed by a greater margin than anticipated, with CPI inflation falling from 8.7 per cent in May to 7.9 per cent in June – the lowest rate since March 2022.
As economists eyed an end to the cycle of interest rate hikes, high street retailer Wilko filed for administration, putting some 12,000 jobs at risk. Having agreed a deal last year to borrow £40m from restructuring specialist Hilco, the firm said it was now facing “mounting cash pressures”.
Insolvencies in England and Wales surged last quarter to their highest level since the financial crisis, as firms were hit by tighter consumer budgets and rising borrowing costs.
