Who has increased interest rates in the UK?
The Bank of England increased interest rates on Thursday the 5th of May, around 2 weeks ago. More specifically, the Bank of England’s MPC (Monetary Policy Committee) was the one who made the final decision. The MPC is made up of nine members, including the Governor and the Chief Economist. Each of these members has a vote, and to ensure they make the right decision, external members appointed by the Chancellor are also included. They make their decision based on a range of factors and are made aware of any monetary policies from the Government.
Before the pandemic the rate was around 0.5%. The full range of figures over a decade can be seen below:
- 2012 – August 2016 = 0.5%
- August 2016 – November 2017 = 0.25%
- November 2017 – July 2018 = 0.5%
- July 2018 – March 2020 = 0.75%
- March 2020 – December 2021 = 0.1%
- December 2021 – February 2022 = 0.25%
- February 2022 – March 2022 = 0.5%
- March 2022 – April 2022 = 0.75%
- May = 1%
According to industry experts, the rate is expected to rise to 2% by the end of this year, due to the high accumulative increase over the past few months.
Why have they been increased?
There are several reasons why interest rates have risen, and why the Bank of England has made this decision. One of the reasons is the reopening of the world since the Covid pandemic where interest rates decreased rapidly. However, another reason is due to Russia’s invasion of Ukraine. The impact this has had on the increase in both gas and oil prices in recent months has been huge.
What should you do now interest rates have risen?
To secure your finance agreement now with fixed interest rates, get in touch with us here at WestWon. As interest rates are expected to rise over the next coming months, now is the best time for you to start thinking about arranging a finance agreement. Our fast and simple process can therefore enable you to receive a quote immediately. This includes our 95% acceptance rate. Get in touch and one of our account managers will get back to you to help you with your finance needs.
If you would like more information on the rise in interest rates, or if you have any other finance needs, then please don’t hesitate to contact us. You can therefore email us on email@example.com, or alternatively you can call us on 01494 611 456.