Interest rates rise to their highest in 14 years – here’s what it means for you

The Bank of England has raised interest rates by 0.5 percentage points to 2.25%, the highest level since December 2008. Saloni Sardana explains what it means for your money.

Bank of England
The Bank of England is raising interest rates in an attempt to curb inflation
(Image credit: © Jose Sarmento Matos/Bloomberg via Getty Images)

The Bank of England has raised interest rates by 0.5 percentage points. The rise is the seventh increase in a row and takes the base rate to 2.25%, the highest level since December 2008.

A rise was expected, but most analysts were expecting a 0.75 percentage point hike.

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Saloni Sardana

Saloni is a web writer for MoneyWeek focusing on personal finance and global financial markets. Her work has appeared in FTAdviser (part of the Financial Times),  Business Insider and City A.M, among other publications. She holds a masters in international journalism from City, University of London.

Follow her on Twitter at @sardana_saloni