UK interest rates set to rise 13th time in a row
The Bank of England is expected to raise interest rates for a 13th consecutive time later as it tries to tackle rising prices, News.Az reports citing BBC.
Official data on Wednesday showed that inflation, the annual rate at which prices go up, was stuck at 8.7% in May.
That has made it more likely for the Bank to announce a rise in its benchmark rate from 4.5%.
Interest rates remain its primary tool to lower inflation, despite debate over its effectiveness.
Analysts say an increase to 4.75% is most likely, but a bigger increase to 5% remains a possibility, although one economist suggested such a rise could suggest the Bank has "completely lost control of inflation".
Any such change would mean further pain for some homeowners, but it could benefit savers.
The Bank rate is already at its highest level for about 15 years, rising consistently since December 2021 in response to the soaring cost of living.
The theory is that raising interest rates makes it more expensive to borrow money, meaning people have less to spend, and so bringing down demand and therefore easing price rises.
A further rise is expected to be confirmed at 12:00 BST on Thursday after a meeting of the Bank's Monetary Policy Committee, which makes the decision independently of government.
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