As Bank of England hikes interest rate to 4.25 per cent, when is the next rise expected?

The Bank of England raised interest rates by 0.25 per cent to 4.25 per cent on March 23 in response to the unexpected surge in inflation earlier this week. This brings the interest rates to their highest point since the 2008 financial crisis, as the bank strives to combat inflation.

With this being the 11th consecutive increase in interest rates since the bank began tightening policy in December 2021, homeowners and businesses are feeling the added pressure.

What is the date of the next interest rate announcement?

The Monetary Policy Committee will release its MPC Summary and minutes, including the current interest rates, on May 11, 2023.

Miracle! Northern lights paint UK skies pink

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Surreal sightings

People of the United Kingdom became witness to a rare sight over Sunday and Monday nights, when surreal northern lights painted the skies of the country pink in a magical phenomenon. The Met Department of the country shared on Twitter some mesmerising photos taken by people from North Uist, North Wales, Cambridgeshire and Shropshire.

Two days in a row

Even if someone missed the aurora sightings on Sunday nights, it was no issue. The weather office had predicted that there will be sightings on Monday too, and it turned out to be true!

Why is this happening?

"A coronal hole high speed stream arrived this evening combined with a rather fast coronal mass ejection leading to Aurora sightings across the UK," the Met Department tweeted.

Rare in London

Although it is extremely rare to spot the Aurora from London, it could be possible during a strong geomagnetic storm. For the best chance of seeing them, it is suggested to find a location with minimal light pollution and a clear view of the northern horizon.

Sightings from flights too

Passengers on flights were fortunate enough to witness the lights, also known as Aurora Borealis, from the sky. They too shared photos on social media.

When was the most recent interest rate announcement?

On March 23, the MPC announced that the bank rate had increased from 4 per cent to 4.25 per cent.

Are interest rates anticipated to increase?

It is expected that interest rates will rise in 2023. Since December 2021, the Bank of England has raised its interest rate from 0.1 per cent to 4.25 per cent.

According to Money to the Market reports, there is a market projection that interest rates may climb as high as 4.8 per cent by July of this year. MoneyWeek's report suggests that the markets are anticipating interest rates to increase to 5.25 per cent.

On the other hand, Capital Economics has predicted that the interest rate will rise to 4 per cent on Thursday, and will reach its peak of 5 per cent later this year.

FAQs

Who is the Governor of the Bank of England?
Andrew Bailey
Where is the Bank of England headquarters?
Threadneedle Street, London

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As Bank of England hikes interest rate to 4.25 per cent, when is the next rise expected?

Bank of England increased interest rates to 4.25 per cent due to unexpected inflation surge, highest since the 2008 financial crisis.