The Bank of England, the UK’s central bank, has raised its base interest rate to 3 percent, the highest for 14 years.
All but two members of the bank’s Monetary Policy Committee (MPC) voted to push up interest rates by 0.75 percentage points, from 2.25 to 3 percent, during a crunch meeting on Nov. 3.
The latest rate rise—the biggest single increase to the UK base rate since 1989—pushes interest rates to their highest since early December 2008, and will heap extra pressures on households.
At a press conference held after the rate hike was announced, Bank of England Governor Andrew Bailey warned it will be a “tough road ahead” for the UK and households….