The Bank of England has increased interest rates to 1.25% from 1.75%.
It’s a sign that they are trying to slow down the UK economy and weaken workers’ wage growth, which would force inflation down.
It’s a sign that they are trying to slow down the UK economy and weaken workers’ wage growth, which would force inflation down.
Interest rate increases reduce the amount of money people can borrow, which means it becomes more expensive to buy houses, cars or anything else.
The pound fell to a low against the dollar, and is likely going to fall further as a result of this interest rate increase.
This means that it will be more expensive for UK companies to buy goods from overseas.
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