Bank of England increases interest rates for 14th time in a row

The Bank of England raises interest rates for the fourteenth consecutive time as it warns that the cost of borrowing will remain high.

Transcript

00:00 The Bank of England has raised its key interest rate by a quarter of a percentage point to 5.25%,

00:07 the highest level in 15 years.

00:10 Its rate influences the cost of borrowing,

00:12 which means the increase can lead to higher mortgage payments for homeowners.

00:17 And the bank has warned that this will likely remain elevated for longer than markets previously anticipated,

00:23 despite the fact that inflation fell to a 15-month low in June.

00:27 It says that while it appreciates that the hike will make things difficult for many,

00:31 it was necessary to bring inflation down to target.

00:35 [SWOOSH]