Bank of England interest rate announcement this week - what could happen

The Bank of England is set to release the new interest rate this week amid new figures that show inflation has failed to fall.

It comes after new figures from the ONS revealed that inflation has not changed, with the Consumer Prices Index remaining at 8.7 per cent in May - the same it was in April. This goes against the Bank's goal of dropping inflation and keeping it at 2 per cent.The main tool used by the Bank to bring down inflation is by raising the base rate. This increase would primarily be felt by mortgage-holders with a variable interest rate.

Why does the Bank of England change interest rates? The BoE raises interest rates to ensure that inflation is brought down. The Bank's Base Rate is factored by the country's economical situation and it is up to the Bank to decide what will bring down the rate of inflation over the next few years. While there is always a chance the interest rate won't change, it seems this is unlikely due to the new inflation figures. Many experts were predicting inflation to fall in May, partly due to the Bank's hardline increases, however this is not the case.

Source: Loan Digest (loandigest.net)

United Kingdom Latest News, United Kingdom Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Will a Bank of England rate rise be enough to calm UK markets?\n\t\t\tKeep abreast of significant corporate, financial and political developments around the world.\n\t\t\tStay informed and spot emerging risks and opportunities with independent global reporting, expert\n\t\t\tcommentary and analysis you can trust.\n\t\t
Source: FT - 🏆 113. / 51 Read more »

Pressure on Bank of England to hike interest rates to 5% despite expected dip in inflation📈 The Bank of England is under pressure to raise interest rates by as much 0.5% to 5 per cent this week in a fresh headache for Rishi Sunak as he faces a political backlash over the spike in mortgage costs
Source: i newspaper - 🏆 8. / 89 Read more »

Should the Bank of England adopt the Fed’s ‘dot plots’?\n\t\t\tLet our global subject matter experts broaden your perspective with timely insights and opinions you\n\t\t\tcan’t find anywhere else.\n\t\t
Source: FT - 🏆 113. / 51 Read more »

Hassell-Collins dropped from England training squadWing Ollie Hassell-Collins is dropped from England's World Cup training squad as Northampton and Leicester players return.
Source: BBCNorthampton - 🏆 32. / 68 Read more »

Teachers in England to strike for two days in July, NEU announcesSchools in England face more disruption as the National Education Union announces fresh strikes.
Source: BBCLondonNews - 🏆 115. / 51 Read more »

The unusual reason why England are playing at Old Trafford tonight instead of WembleyFor the first time in 16 years, England will play an international match at Old Trafford tonight as they take on North Macedonia. The Three Lions are looking to extend their perfect start to Euro 2…
Source: talkSPORT - 🏆 91. / 53 Read more »