The Bank of England (BoE) has raised interest rates from 4.25 percent to 4.5 percent marking their highest level in almost 15 years.
It’s the bank’s 12th consecutive rate hike and a peak since October 2008.
Governor Andrew Bailey said the BoE is now forecasting “modest but positive growth” instead of a “shallow but long recession” predicted six months ago.
He also signalled that further increases will come if there is a wage-price spiral.
It comes as the UK Consumer Prices Index (CPI) inflation remained above 10 percent in March, 0.8 percentage points higher than the BoE’s prediction in February. Food prices were particularly high, 19.2 percent higher than the same month last year….