Bank of England governor announces raise of interest rate to tackle inflation

The Bank of England Andrew Bailey has announced the 12th rise of interest rates that could increase mortgage costs for millions of Britons.

In a bid to to tackle “stubbornly high” inflation, the Monetary Policy Committee (MPC) voted to hike the base interest rate from 4.25 per cent to 4.5 per cent.

Andrew Bailey said that the UK inflation is expected to fall slower than previously thought as food prices remain stubbornly high, and warned inflation is set to decline less rapidly this year because food price hikes have gone on longer than expected, partly due to the Ukraine war and poor harvests in Europe.

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