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.
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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]