The Bank of England has raised interest rates for the 10th time in a row, but analysts predict it is nearing the peak. The benchmark rate has gone up from 3.5% to 4% following the latest Monetary Policy Committee meeting. The rate is at its highest level for 14 years. The impact of a rate rise will be felt by borrowers – through higher mortgage and loan costs – and in better returns for savers across the UK.
UK price inflation fell for the third month in a row to 10.1% in the year to January from 10.5% in December. The biggest factors in the rate slowing were decreases in fuel prices and the cost of dining out. To calculate inflation, which measures the increase in the price of something over time, the Office for National Statistics (ONS) keeps track of the prices of hundreds of everyday items. If it falls, it does not mean the prices of goods are going down, it just means prices are rising more slowly. Many analysts believe inflation will continue to fall, although it is still currently five times the Bank of England’s target of 2%.
Source: BBC
