The Bank of England has raised interest rates for the third month in a row.
The Bank also warned that the Ukraine conflict could see under-pressure households hit with double-digit inflation later this year.
Members of the Bank’s Monetary Policy Committee (MPC) voted eight to one to increase rates from 0.5% to 0.75%. The move takes rates back to where they were before the pandemic struck.
Commenting on the interest rates rise, Alpesh Paleja, Lead Economist at the Confederation of British Industry (CBI), said: ‘With ongoing conflict in Ukraine pushing global commodity prices higher and exacerbating supply chain disruption, the MPC are clearly making moves to counter growing inflation.
‘But they will be walking a tightrope in the months ahead, having to both keep price pressures in-check and manage the impact of tighter monetary policy on economic growth – particularly against a background of rising living costs.’
Read our blog on the cost-of-living crisis here.
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