Staff reporter
LONDON: The Bank of England has raised its base interest rate to 4%, in a move aimed at tackling persistent inflation and bringing price increases under control.
The decision is expected to affect millions of households, particularly homeowners with variable-rate mortgages, as well as businesses relying on borrowing. Higher interest rates could increase monthly mortgage repayments and make loans more expensive.
The increase marks the first rate rise since August 2023. The decision comes amid growing inflationary pressures linked to higher global energy prices and the conflict involving Iran. UK inflation climbed to 3.5% in September, significantly above the Bank’s 2% target.
The Bank hopes the increase will discourage excessive spending and borrowing, helping to bring inflation under control.
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