Menu
10/05/2007
Interest rates rise to 5.5%
The Bank of England has announced that interest rates will rise from 5.25% to 5.5%.
The rise is the fourth since last August, bringing the cost of borrowing to its highest level since 2001.
The rise has been expected by analysts in order to try and keep inflation down.
Last month, the Bank of England was forced to write a letter of explanation to Chancellor Gordon Brown after inflation rose to 3.1% in March.
The government's target for inflation is targeted at 2% and the Bank is required to keep inflation between 1% and 3%.
The rise means that homeowners with a £100,000 mortgage will have to pay an extra £16 per month on average on mortgage repayments.
A statement released by the Bank of England's Monetary Policy Committee said: "CPI inflation picked up to 3.1% in March. Lower gas and electricity prices and weaker import price inflation mean that CPI inflation is likely to fall back to around the 2% target in the course of this year. But the margin of spare capacity in firms appears limited and there are signs that businesses are more able to push through the price increases. Relative to the 2% target, the risks to the outlook for inflation in the medium term consequently remain tilted to the upside.
"Against that background, the Committee judged that a further increase in bank rate of 0.25 percentage points to 5.5% was necessary to meet the 2% target for CPI inflation in the medium term."
(KMcA/JM)
The rise is the fourth since last August, bringing the cost of borrowing to its highest level since 2001.
The rise has been expected by analysts in order to try and keep inflation down.
Last month, the Bank of England was forced to write a letter of explanation to Chancellor Gordon Brown after inflation rose to 3.1% in March.
The government's target for inflation is targeted at 2% and the Bank is required to keep inflation between 1% and 3%.
The rise means that homeowners with a £100,000 mortgage will have to pay an extra £16 per month on average on mortgage repayments.
A statement released by the Bank of England's Monetary Policy Committee said: "CPI inflation picked up to 3.1% in March. Lower gas and electricity prices and weaker import price inflation mean that CPI inflation is likely to fall back to around the 2% target in the course of this year. But the margin of spare capacity in firms appears limited and there are signs that businesses are more able to push through the price increases. Relative to the 2% target, the risks to the outlook for inflation in the medium term consequently remain tilted to the upside.
"Against that background, the Committee judged that a further increase in bank rate of 0.25 percentage points to 5.5% was necessary to meet the 2% target for CPI inflation in the medium term."
(KMcA/JM)
Related UK National News Stories
Click here for the latest headlines.
13 September 2011
UK Inflation Grows To 4.5%
The UK's rate of inflation has risen to 4.5%, according to statistics published today by the Office of National Statistics. The consumer price index, which measures the value of goods and services, revealed on Tuesday that annual inflation had risen again in August from 4.4% in July.
UK Inflation Grows To 4.5%
The UK's rate of inflation has risen to 4.5%, according to statistics published today by the Office of National Statistics. The consumer price index, which measures the value of goods and services, revealed on Tuesday that annual inflation had risen again in August from 4.4% in July.
05 April 2007
Interest rates kept on hold
The Bank of England has voted to keep interest rates at 5.25% for the second month in a row. The decision is good news for borrowers, as there had been fears that interest rates would be increased to 5.5% this month. If this had happened, homeowners with an average £100,000 mortgage would have faced a rise of £16 per month on their repayments.
Interest rates kept on hold
The Bank of England has voted to keep interest rates at 5.25% for the second month in a row. The decision is good news for borrowers, as there had been fears that interest rates would be increased to 5.5% this month. If this had happened, homeowners with an average £100,000 mortgage would have faced a rise of £16 per month on their repayments.
13 August 2007
House Prices Rise By 12% In June
UK annual house price inflation in June 2007 was 12.1%, up from 10.8% in May 2007. Annual house price inflation in London was 17.5% in June, up from 14.3% in May. The UK annual house price inflation rate for the 3 months to June was 11.3% and 15.1% in London. The UK house price inflation rate rose from 10.8% in May 2007 to 12.1% in June 2007.
House Prices Rise By 12% In June
UK annual house price inflation in June 2007 was 12.1%, up from 10.8% in May 2007. Annual house price inflation in London was 17.5% in June, up from 14.3% in May. The UK annual house price inflation rate for the 3 months to June was 11.3% and 15.1% in London. The UK house price inflation rate rose from 10.8% in May 2007 to 12.1% in June 2007.
16 September 2008
UK Inflation To Peak At 5% "Soon"
High energy and food bills have led to the UK's annual rate of inflation hitting 4.7%, prompting the Bank of England (BoE) Governor to write to the Chancellor. Mervyn King has told the Government that inflation will peak at around 5% "soon", and that policy makers are determined to prevent higher prices from pushing up wages.
UK Inflation To Peak At 5% "Soon"
High energy and food bills have led to the UK's annual rate of inflation hitting 4.7%, prompting the Bank of England (BoE) Governor to write to the Chancellor. Mervyn King has told the Government that inflation will peak at around 5% "soon", and that policy makers are determined to prevent higher prices from pushing up wages.
18 May 2004
Petrol prices fuel inflation rise
Recent oil market pressures and rises on the prices of furnishings have lead to a 0.1% rise in the past month to 1.2%, according to the Office of National Statistics (ONS). The Consumer Prices Index (CPI) - the government's target measure of inflation - rose from 1.1% in March after the price of petrol and domestic heating oil upped this April.
Petrol prices fuel inflation rise
Recent oil market pressures and rises on the prices of furnishings have lead to a 0.1% rise in the past month to 1.2%, according to the Office of National Statistics (ONS). The Consumer Prices Index (CPI) - the government's target measure of inflation - rose from 1.1% in March after the price of petrol and domestic heating oil upped this April.
-
Northern Ireland WeatherToday:It will be cloudy again throughout the day. Mainly dry in the morning, but patchy drizzle in places, becoming more widespread and persistent in the afternoon. Freshening southwesterly winds. Maximum temperature 12 °C.Tonight:Cloudy with a spell of heavy rain pushing south through late evening and the early hours, followed by some clear spells. Minimum temperature 6 °C.
