Interest rates have been raised yet again as the Bank of England grapples with bringing inflation under control
Rates are now fixed at 5 per cent,the highest level for 15 years up half a percentage point from the last rise
The monetary committee has warned that underlying inflation will remain high for a few months more
It said that “Second round effects in domestic price and wage developments generated by external cost shocks are likely to take longer to unwind than they did to emerge. There has been significant upside news in recent data that indicates more persistence in the inflation process”
The Chancellor Jeremy Hunt has backed the Bank of England’s decision to raise interest rates to five percent in an effort to tackle inflation. “The lesson from other countries is that if you stick to your guns, you bring inflation down,” he said.
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