Summary

  • The Bank of England raises interest rates for an 11th consecutive time - from 4% to 4.25%

  • The rate rise follows a surprise jump in inflation last month to 10.4%, pushed up by salad and vegetable shortages

  • A rise will see the cost of variable or tracker mortgages go up but the rate of return for savers may improve

  • The bank rate of 4.25% is the highest level for 14 years - rates have been going up as a way to tackle rising prices

  • The US central bank raised interest rates on Wednesday by 0.25% despite fears about financial turmoil with several recent bank failures

Live Reporting

Edited by Rob Corp

  1. Another interest rate rise expected

    Jennifer Meierhans
    BBC business reporter

    Good morning and welcome to our live coverage ahead of the latest Bank of England decision on interest rates at midday.

    The UK’s official interest rate - called the base rate - is already at a 14-year high of 4%.

    But the Bank is expected to put it up even further, to 4.25%, which would be the 11th rise in a row.

    If it does, monthly payments on some mortgages, loans and credit cards will go up but some people will earn more money on their savings.

    As we await the decision, we’ll be explaining why this is happening and talking you through the broader economic picture.

    Later, you’ll get all the reaction to what the Bank does and what it has to say about the decision, as well as analysis from our economics and cost of living correspondents on what it means for you. Stay with us.