Bank of England raises interest rates to 1.25%

The Bank of England raised on Thursday the interest rates to 1.25 percent for a fifth time respectively to handle growing inflation rate that is heading towards 11 percent.

The Bank’s Monetary Policy Committee (MPC) voted by a majority to raise its key base rate by 0.25 percentage points to 1.25 percent in response to living costs rising at the fastest annual rate for four decades, economist expertise expected.

Threadneedle Street now expects the UK economy to retract in the second quarter, while another rise in household energy bills expected to push inflation above 11 percent in October.

The rate rise means that homeowners with a typical tracker mortgage will have to pay about £25 more a month.