THE GUARDIAN: Policymakers vote for quarter-point rise to 5.25%, the 14th increase in a row, as Bank rules out prospect of recession
The Bank of England has warned businesses and households that the cost of borrowing will remain high for at least the next two years as it raised interest rates for the 14th consecutive time to 5.25%.
Ruling out the likelihood of a recession over the next two years, policymakers blamed strong wages growth in recent months for the need to increase interest rates by 0.25 percentage points to the highest level for 15 years.
Officials on the Bank’s monetary policy committee (MPC) said the economy had proven more resilient during a period of high interest rates than they expected when they last made an assessment of the UK economy in May. (+ video) » | Phillip Inman | Thursday, August 3, 2023
