Bank of England interest rates increased to 4%

This hike, the tenth time Threadneedle Street has done this in a row, will see rates hit 4%. The 0.5% increase is the second consecutive rise of that magnitude, but still less than the 0.75% rise recorded in early November, which was the biggest hike since 1989.  

The interest rate is now at a 14-year high.

The rates have been consecutively hiked since before the pandemic when interest rates were relatively low, but aftershocks from the pandemic, war in Europe and the lingering effects of September’s mini budget have all contributed to the BoE’s decisions to hike the rates.

UK consumer price inflation eased slightly to 10.7% in November, down from 11.1% in October, offering hopes that price pressures may have peaked.

CEO of Octane Capital, Jonathan Samuels, commented: “Another month, another escalation of the Bank of England’s current stance on raising borrowing costs. This is the tenth consecutive rise from our friends in Threadneedle Street and miles away from the now distant days of a sub 1% environment.

“That said, one hopes that all of the blood has now been squeezed from the stone and that rates have peaked. Surely it’s time that we focus on investing in business growth now that inflation seems to be tamed at last?”