BoE increase base rates by 0.25% to 4.5%

michaels

Aberdeenangarse said:

hildosaver said:

Good chance we hit 5% by the end of this year. Very very painful.

It looks like it could be 5.5% - 6%

"The inflation figures were bad," says Willem Buiter, a founding MPC member. He believes the Bank has been playing catch-up for a while. "To address the inflation problem, policy rates in the UK will have to increase materially and speedily."

Buiter believes policymakers should raise rates by half a percent at their next meeting in June. "I see Bank Rate peaking at no less than 6pc."

It is the flip side of no recession - interest rates are supposed to reduce demand to slow the economy: less demand = less jobs = less pay rises.  Economy hasn't slowed as much as expected which was being touted as a good thing except it just prolongs the pain.