The Bank of England has raised the base rate from 4.0% to 4.25%. This is the first rate rise since August 2018, when the Bank of England raised the base rate from 0.5% to 0.75%.
The Bank of England’s Monetary Policy Committee (MPC) voted unanimously to raise the base rate in response to rising inflation and a strengthening economy. The MPC said that the UK economy is performing well and that the outlook for growth is positive.
The Bank of England said that the rate rise was necessary to keep inflation in check and to ensure that the economy continues to grow at a sustainable pace. The MPC also noted that there are risks to the outlook, including Brexit-related uncertainty and the potential for higher oil prices.
The Bank of England said that it will continue to monitor the economic situation closely and may adjust the base rate further if necessary.