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Emma Walsh

Bank Of England Hikes Interest Rate To 5%

UK interest rates have been raised to 5% by the Bank of England, as it battles to control soaring prices.



The Bank has increased rates to 5% from 4.5% - the 13th increase in a row.


  1. The Bank of England has increased the base rate to 5% - up from 4.5%

  2. It's a bigger increase than most forecasters expected

  3. Higher interest rates are intended to lower inflation, by giving mortgage-holders less to spend

  4. It is the 13th time in a row that, when deciding whether to change the rate, it has chosen to increase it

  5. Shock figures yesterday showed inflation - the rate at which prices are going up - stuck at 8.7% in May

  6. Homeowners are facing big increases in mortgage repayments, with the average two-year fixed rate deal hitting 6.19% on Thursday



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