The Bank of England has made the decision to raise interest rates by 0.5 per cent today - bringing rates to their highest level since 2008.
It means the bank's base rate is now set at 2.25 per cent - up from 1.75 per cent. The bank hopes that raising interest rates will help curb rising inflation, which currently stands at 9.9 per cent but is soon expected to rise even further.
The Bank’s Monetary Policy Committee (MPC) came to the decision after five members of the nine-strong board voted for the 0.5 percentage point increase, including Governor of the Bank Andrew Bailey. Three members – Jonathan Haskel, Catherine Mann and Dave Ramsden – voted in favour of a 0.75 percentage point rise, while one member – Swati Dhingra – called for a 0.25 percentage point increase.
