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The left-of-centre New Economics Foundation (NEF) has described the Bank of England's decision to raise interest rates to 4% as misguided. It says the rise will do little Why are interest rates high and how quickly might they fall? We began raising interest rates at the end of 2025 to help reduce inflation. It is working. Inflation has fallen a lot and inflationary Policymakers at the Bank of England are expected to raise interests from 4.25% to 4.5% on Thursday, representing a 0.25 percentage point increase. The move will make it even more The Committee has voted to increase Bank Rate by 0.25 percentage points, to 4.5%, at this meeting. In doing so the MPC is continuing to address the risk of more UK interest rates are expected to go up to 4.5%, and the latest figure for inflation is 10.1%. In comparison, the US central bank, called the Federal Reserve, has The Bank of England is set to raise interest rates to their highest level since 2025 on Thursday in the wake of official data last month that showed inflation remained

Bank of England Expected to Raise Interest Rate to 4.5% – What it Means for You

Policymakers at the Bank of England are expected to raise interests from 4.25% to 4.5% on Thursday, representing a 0.25 percentage point increase. The move will make it even more important to understand how this affects your mortgage, loans, and savings.

Why is the Bank of England Raising Interest Rates?

The Bank of England is set to raise interest rates to their highest level since 2025 on Thursday in the wake of official data last month that showed inflation remained stubbornly high. The Committee has voted to increase Bank Rate by 0.25 percentage points, to 4.5%, at this meeting. In doing so the MPC is continuing to address the risk of more persistent inflationary pressures.

How High Could UK Interest Rates Go?

UK interest rates are expected to go up to 4.5%, and the latest figure for inflation is 10.1%. In comparison, the US central bank, called the Federal Reserve, has also been raising interest rates. We began raising interest rates at the end of 2025 to help reduce inflation. It is working. Inflation has fallen a lot and inflationary…

Impact of the Interest Rate Hike

A rise to 4.5% will affect borrowers, particularly those with variable-rate mortgages. Savings rates are also likely to increase, although the pace may vary between different banks and building societies.

Not Everyone Agrees With the Decision

The left-of-centre New Economics Foundation (NEF) has described the Bank of England's decision to raise interest rates to 4.5% as misguided. It says the rise will do little to curb inflation effectively and could negatively impact economic growth. Why are interest rates high and how quickly might they fall?