May interest rate rise: Positive Money response

May 11, 2023 

Today, the Bank of England’s Monetary Policy Committee decided to raise interest rates for the 12th consecutive time to a 15-year high of 4.5%.

Fran Boait, co-executive director of Positive Money said:

“The Bank of England is still failing to read the room: hundreds of thousands of households failed to meet rent or mortgage repayments last month because of higher interest rates.

“The only beneficiaries of rate rises are banks, who not only siphon off those higher interest payments from consumers, but gain billions from the higher interest payments the Bank itself pays them for the money they hold with it.

“Rate hikes are doing more harm than good; it’s time to put the brakes on, and support families in dealing with rising costs, not heap further costs on them.”

Notes

• Bank of England MPC decision, 11th May 2023: 

• Which? found 700,000 households missed rent or mortgage payments in April: https://www.which.co.uk/policy-and-insight/article/700000-households-missed-rent-or-mortgage-payments-in-april-which-finds-ajYFu5w1wyK0 

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