As we await the Bank of England’s decision, here are a few snippets about the man who runs the UK’s central bank.

The Bank’s governor Andrew Bailey took over the role in 2019, after working at the Bank for more than 30 years.

He was born in Leicester, gained a history degree and a PhD in economic history at Queen’s College, Cambridge, and then became a research officer at the London School of Economics before joining the Bank of England.

As the Bank’s chief cashier from January 2004 until April 2011 his signature also appeared on billions of UK banknotes.

He doesn’t decide on interest rates on his own though - he’s part of the nine-member Monetary Policy Committee, external that meets eight times a year and votes on whether to increase, reduce or hold interest rates.

• Andrew Bailey's 'slow and steady' rise to power

Image source, Reuters

The UK is not alone in seeing interest rates rise, with other countries taking a similar approach to tackling inflation.

UK interest rates are expected to go up to 4.5%, and the latest figure for inflation is 10.1%.

In comparison, the US central bank, called the Federal Reserve, has increased its benchmark rate to between 5% to 5.25%, which is the highest level in 16 years - up from near zero in March 2022.

In the US, inflation was 5% in March - down from 6% in February.

And in Europe, inflation in France was 5.7% in March (down from 6.3% in February) while the Eurozone’s largest economy, Germany, saw inflation at 7.4% in March (down from 8.7% in February).

The European Central Bank has also raised rates again, although by a smaller amount than in previous months.

The ECB has lifted its three key interest rates by 0.25 percentage points - with its key deposit rate (how much interest it pays on deposits) up to 3.25% from 3%.

Dharshini David
Economics Correspondent

Prices up more than 10% on a year ago spells difficult choices. Over 60% of people are cutting back on non-essential spending, around half are buying less food and other basics, according to official figures.

And it may yet get more painful. With prices racing ahead of wages, the average household will be 6% worse off by the end of 2024 than in 2021, say the official number crunchers - the biggest fall in living standards in over 60 years.

Compounding the blow are higher interest rates. The 1.4 million households on variable or tracker mortgages are already suffering - a further 1.8 million households are coming off fixed-rate mortgages this year to face interest payments that have at least doubled.

Why inflict the pain? The Bank’s job is to curb inflation by squeezing spending. And with many retailers, hotels, the leisure and industry able to pass on big price hikes for non-essentials and luxuries, it thinks there’s more that can be targeted.

The tools for tackling inflation have a price - but runaway inflation could have an even larger one.

Economists and analysts widely expect the Bank to raise interest rates again to 4.5%.

Alex Brazier, deputy head of BlackRock Investment Institute and a former executive director of financial stability at the Bank of England, told the BBC's Today programme, external that there were two key things we should be looking for.

The first, he says, is seeing how quickly the Bank's Monetary Policy Committee - which decides the level of interest rates - wants to bring inflation back down to its target rate of 2%.

The economist says the second thing to watch out for is whether the Bank believes its decision to increase rates 11 times already has had an impact so far.

Image source, Cheryl

Radio 5 Live's Nicky Campbell has been asking his listeners whether they can afford an interest rate rise.

Cheryl in Bromley, Greater London, who is 43, says the interest rate rises last year led to her having to sell her house and move back in with her parents.

"I lived with my daughter and couldn't provide a roof over her head," she says. "She had to go live with her father and I found myself back at my parents' house."

Her monthly mortgage payments rose from £1,200 to £2,200, which as a single parent she was unable to afford.

"When I spoke to my bank about help - I wanted to go to an interest-only mortgage - they suggested I borrow money from friends and family," she says.

"I've never borrowed money and to ask somebody if I can borrow money every single month so I can make ends meet, that's not what I've done and it didn't feel natural to me to do that.

"I can't imagine what people are going to do with more hikes," she adds.

We'll be joined at 14:00 BST by the BBC’s personal finance correspondent Kevin Peachey to answer some of your questions about interest rates.

Kevin has been reporting on the UK’s ability to spend, budget and save for well over a decade.

If you have a question or want to share how you are being affected, email haveyoursay@bbc.co.uk or get in touch via WhatsApp: +44 7756 165803.

Faisal Islam
Economics editor

The Bank of England is expected to vote to raise rates again at midday to try to dampen stubbornly high rates of inflation.

Part of that is the fact that the economy has been hit less than was expected by the series of economic shocks affecting the world.

After it’s released its decision on interest rates, the Bank will also release its new forecast for the economy.

It has already rowed back on assumptions there would be a long and deep recession. It could go a little further today, projecting a bit of growth rather than stagnation.

Despite record food price rises, UK consumers have carried on spending, albeit getting less for the pound in their pocket than a year ago.

The still low levels of unemployment have helped Britain weather an energy shock, that could have been much worse. But the basic position is still very sluggish growth, if any, and very high inflation, with rising rates.

High inflation in the UK in recent months has been largely driven by the soaring cost of energy.

When energy bills for businesses and suppliers go up, it can lead to the prices for customers going up, increasing the cost of living.

The soaring cost of energy has been a key factor in driving inflation. Oil and gas were in greater demand as life got back to normal after Covid.

At the same time, the war in Ukraine meant less was available from Russia, putting further pressure on prices.

Dearbail Jordan
Business reporter

I’m back at the Bank of England and about to go subterranean.

This month’s announcement is a big one - as well as any changes to the UK interest rate, the Bank will also publish its Inflation Report where it sets out where it thinks the economy is heading.

Because of that, I will be locked up in the Bank of England’s basement for two hours instead of the usual one.

If that sounds scary, don’t worry. Whenever the Bank of England makes a rate announcement, journalists are invited to read it beforehand so we can write it up in time for midday when the central bank makes it public.

To make sure any information does not leak before 12:00pm, we journalists are ushered to a room in the Bank’s basement - which frankly needs a lick of paint - that is locked. Before that, we also have to surrender our mobile phones.

Two hours might seem like ages to be locked in a room with Fleet Street’s finest, but the time really does fly - helped, in no small part, by the free tea and biscuits the Bank lays on.

It’s all about inflation - the rate at which prices for goods are rising. Inflation reached a 40-year high in recent months, pushing the cost of living up and leaving many people struggling with higher food prices and energy bills.

It has dropped a little now, but it is still at 10.1% (this means things cost 10.1% more now than they did a year ago).

Part of the Bank’s job is to keep inflation at a target rate - and its target rate is 2%, way, way lower than the current rate.

So in response to rising prices, the Bank of England has increased interest rates, which makes the cost of borrowing money more expensive.

This move, in theory, is supposed to make people reduce spending, so that demand for goods cools and price rises slow.

However, it is a tough balancing act as the Bank does not want to slow the economy too much.

You can read more about it here.

Interest rates are the extra money that gets charged on top of a loan. For example, if you borrow £100 from a bank and the bank charges a 5% interest rate, you will pay the bank back £105.

The Bank of England is the UK’s central bank, independent of the government. It sets a “base rate” and this influences the rates charged by lenders on things like mortgages, credit cards and loans. So if the Bank puts its base rate up, that means you'll pay more interest on borrowed money - unless you’ve borrowed it at a fixed interest rate.

Interest rates are often a big deal for people with mortgages, especially those who do not have mortgages with fixed interest rates.

But it is not all bad news, as higher interest rates should see an increase in the interest people earn on savings - though banks can be slow to pass on these rises.

Alexandra Fouché
Live reporter

Hello and welcome to our live coverage as we await the Bank of England’s latest decision on interest rates at 12:00 BST.

The Bank has already raised rates to a 14-year high over the past couple of years, as it tries to bring the soaring cost-of-living under control.

It’s widely expected to put them up again for a 12th consecutive time today - from 4.25% to 4.5% - meaning mortgage and loan payments go up (again) for many people. We’ll be watching too to see what the Bank says about the economy.

I’m here with Michael Race from our Business team, Michael Sheils McNamee and our economics editor Faisal Islam is also on hand, and we’re poised to bring you updates and analysis.

Not sure exactly what interest rates are and why they matter? Stay with us, we’ll explain.