Bank rate goes up for the fifth time in a year

05 07 2007 United Kingdom

The Bank of England has raised bank rate to 5.75 per cent, the fifth increase in the last 12 months.

Although inflation fell back to 2.5 per cent in May, the Bank of England’s Monetary Policy Committee (MPC) decided an increase in bank rate to 5.75 per cent was necessary to meet the 2 per cent inflation target.

The exchange markets had expected this further rise and Sterling remained unchanged at $2.01.

Many economists now forecast that UK rates will hit 6 per cent by the end of the year.

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