The Bank of England has raised interest rates for the tenth time in a row. The Monetary Policy Committee voted to raise rates by 0.5% to a 15-year high of 4%.
Fran Boait, executive director at Positive Money, commented:
“Raising interest rates today was the wrong decision. Higher rates have already exacerbated the cost of living crisis, and this choice will worsen the situation for millions.
“Placing greater financial stress on households, particularly the 750,000 tracker mortgage holders who will see their repayments increase by £50 per month, will deepen and elongate a recession in the UK. All of the signs point to a failure of economic policy from both the government and the Bank of England.
“The government must invest in working people instead of burdening them, by making our tax system fairer to help boost incomes and support our vital public services.”
Notes
- Bank of England MPC decision, 2nd Feb 2023: https://www.bankofengland.co.uk/monetary-policy-summary-and-minutes/2023/february-2023
About
Positive Money campaigns for a money and banking system which supports a fair, democratic and sustainable economy. Set up in the aftermath of the financial crisis, Positive Money is a not-for-profit company funded by charitable trusts and foundations, as well as small donations from its network of over 65,000 supporters. www.positivemoney.org
For more information or to arrange a briefing/interview with a spokesperson, please contact press@positivemoney.org.uk.
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