Bank of England increases interest rates to 4 per cent
The Independent|February 03, 2023
The Bank of England has raised interest rates for the tenth time in a row, putting more pressure on mortgage payers and businesses struggling to pay off loans. Decision-makers on the Bank's Monetary Policy Committee (MPC) opted to hike the base rate from 3.5 per cent to 4 per cent, to help bring down double-digit inflation.
MATT MATHERS
Bank of England increases interest rates to 4 per cent

The Bank said that the UK is still headed for a recession but stressed that the economic downturn could be shallower and shorter than previously expected. Gross domestic product is set to shrink by 1 per cent, from around 3 per cent in an earlier forecast. This is because wholesale energy prices have fallen significantly since the MPC produced its last forecast in November and inflation has begun to fall from its peak last year.

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