16 Jun 2022

Interest rates rise to 13-year high

Interest rates have gone up for the fifth time in a row. The Bank of England has raised them by a quarter point to 1.25% – the highest level for 13 years.

The problem – surging inflation, which the Bank now thinks will go even higher – peaking above 11% this autumn.

Rising oil prices on international markets have contributed to a lot of that – sending petrol and diesel prices to record highs.