Will interest rates rise this year?

Bank of England says higher inflation and a pick-up in growth could lead to first rate hike in a decade

The Bank of England
(Image credit: Adrian Dennis/AFP/Getty Images)

The Bank of England paved the way to raise interest rates for the first time in a decade yesterday, after its main decision-making body said rising inflation and stronger than expected growth could lead to a rate hike “in the coming months”.

While the nine-strong Monetary Policy Committee, which is responsible for setting the UK’s base rate of interest, voted 7-2 to hold rates at 0.25%, it was talking in “much stronger terms” about an increase says the BBC.

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