Bank of England raises base rate

The Bank of England (BoE) has raised UK interest rates by half a percentage point to 3.5%.

It is the ninth consecutive increase and takes the base rate to its highest level for 14 years as the Bank battles to stem soaring prices.

The Bank's Monetary Policy Committee (MPC) voted 6-3 in favour of putting rates up by 0.5%. The BoE also warned that further increases may be necessary to tackle what it fears may be persistent domestic inflationary pressures from prices and wages.

Commenting on the rise, Alpesh Paleja, Lead Economist at the Confederation of British Industry (CBI), said:

'Another big interest rate rise from the BoE doesn't come as a surprise in the face of historically high inflation.

'However, with global price pressures starting to wane along with the economy set to fall into recession, it is likely that we'll see smaller interest rate rises for the foreseeable future. Nonetheless, high inflation and weakening activity will continue into 2023, putting strain on many households and businesses.'

Internet link: Bank of England website

About us

We were established over 80 years ago

We continue to build on our enviable reputation for providing excellent advice and first class service to our business and personal clients alike...

Bere Mill Cows image by Henry Lawford, licensed under CC 2.0 license.

© 2025 Montpelier Professional (Galloway) Limited . All rights reserved. We use cookies on this website, you can find more information about cookies here. powered by totalSOLUTION

Newton Stewart Office : Montpelier Professional (Galloway) Limited , 1 Dashwood Square, Newton Stewart, Dumfries & Galloway DG8 6EQ
Leswalt Office : Montpelier Professional (Galloway) Limited , Challoch Inn, Leswalt, Dumfries & Galloway DG9 0LJ

VAT No 151 179 030. Registered in England and Wales No. 06025692. Registered Office: Sanderson House, Station Road, Horsforth, Leeds LS18 5NT. Montpelier Chartered Accountants is a trading name of Montpelier Professional (Galloway) Limited.

Professional Indemnity Insurers: Tokio Marine HCC, 1 Aldgate, London EC3N 1RE