UK Interest Rates Climb to 4.5% - Highest since 2008

Unsurprisingly, UK monetary policy interest rates have ticked upwards again, reaching 4.5% after today's Bank of England announcement. However, the Bank is also of the view that inflation is going to fall more slowly in the months ahead as food prices - a key part of core inflation - remain stubbornly high. And this might also mean that interest rates remain higher for longer too.

Larry Elliott looks into his crystal ball and attempts to predict the future direction of travel. His conclusion? That the bulk of recent rate rises have yet to filter through to consumers, and as such there haven't been many changes to behaviour. As a result, he thinks that the Bank is likely to adopt a wait-and-see approach before raising rates again, although depending upon how things pan out this could alter.

The excellent Jack Barnett writes in City AM

The increase in the Bank rate to 4.5% from 4.25% means those on a typical tracker mortgage will pay about £24 more a month. Those on standard variable rate mortgages face a £15 jump.

Bigger stories brewing perhaps