Sterling The Bank of England says it will not hesitate

Interest rates: Borrowing costs set to rise as bank sets new interest rate

Interest rate rises to 3% – biggest increase in decades – BBC News

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  • The Bank of England is raising interest rates by 0.75% to 3% – the biggest hike in more than three decades
  • It also forecasts the UK is facing a “very challenging” two-year recession – the longest on record
  • The interest rate affects things like mortgages, repayments of credit card debt, and the interest paid on savings accounts
  • Interest rates have been rising since December to curb inflation – the measure of the rate at which the cost of basic goods and services is rising
  • Today’s rise follows economic turmoil under Liz Truss’ government; although things have calmed down a bit since Rishi Sunak took over
  • Sunak has promised a new plan to fix the nation’s finances later this month, but tax hikes and spending cuts are expected
  • The war in Ukraine and the long recovery from the pandemic are also contributing to rising energy and food costs
  • The BBC today also hears from people in Derby how rising living costs, such as utility bills, are affecting them