Bank of England holds interest rates (again)

London, 9 May 2024 – Positive Money responds to the Bank of England’s decision today to hold interest rates for a sixth consecutive time at a 15-year high of 5.25%.

Hannah Dewhirst, head of campaigns at Positive Money, said:

“Falls in headline inflation aren’t felt equally across all products, with food prices remaining stubbornly high, and they aren’t the result of the Bank of England’s rate hikes, but easing global pressures.

“Despite over two years of higher rates now, inflation remains above target because interest rates aren’t fit for the task at hand; they fail to address several major causes of inflation, such as crops shortages and transportation issues caused by climate change.

“All rate rises have done is hand billions of extra profit to banks while making households poorer and increasing the cost of investments we need, especially in green energy. We need a serious rethink of how we deal with inflation, fit for the challenges of the 21st century, such as widening inequality, geopolitical crises and environmental breakdown.” 

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