The Bank of England has hiked interest rates for the tenth time in a row, putting even more pressure on households amid the ongoing cost of living crisis. The Bank said the decision on Thursday was taken to help keep inflation under control and indicated that it might be nearing the end of its successive interest rate rises.
The Bank also forecast that an expected recession will be shorter and shallower than previously thought. It came as Chancellor Jeremy Hunt said that he would try to "support" Governor Andrew Bailey and his team's efforts to lower inflation in next month's Spring budget, due to take place on March 15.
Decision makers on the Bank's Monetary Policy Committee (MPC) opted to hike the base rate from 3.5% to 4%, to help bring double-digit inflation under control. Inflation has already started to come down off the highs of late last year, and the Bank said it expects the measure to fall quickly in 2023.
