Interest Rates?????
Why have interest rates gone up?
On Thursday 2 February 2023,?
The BoE raised?interest rate (Bank Rate) by 0.5 percentage points to 4%.
Interest rates influence many other rates in the UK, including those you might have for a loan, mortgage, or savings account.
The BoE is raising interest rates because inflation is too high. It’s around 10% now. The target is 2%.?
Raising interest rates is the best way to bring down?inflation.
It means many people will face higher borrowing costs. And some businesses will face higher loan rates.
We know that will make things harder for many people, coming on top of higher energy and food bills.
But the UK economy needs to act to lower inflation. Low and stable inflation is vital so that money keeps its value and people can plan for the future with confidence. It’s fundamental for a healthy economy. #property#development#investment