The Bank of England has upped the base rate for the fifth time since December as it attempts to suppress soaring inflation. The base rate has risen by 0.25 percentage points from 1 per cent to 1.25 per cent, having been previously increased from 0.1 to 1 per cent during the previous four successive rises.
This is the first time since February 2009 that the base rate has been above 1 per cent, when it was heading downwards following the financial crisis in 2008.
Continued inflationary pressure is thought to be behind The Monetary Policy Committee’s decision to raise the rate once again.
However, some economists suggest it will do little to stem the cost-of-living rises triggered by the higher prices on food and materials coming from abroad and the soaring costs of energy.
