BANK OF ENGLAND: INTEREST RATE LOOMS AGAIN

Jeremy Hunt, the chancellor, has warned that inflation is the «No 1 enemy» with households and businesses facing another increase in borrowing costs when Bank of England officials meet to decide interest rates today.

The central bank is expected to raise interest rates today for a ninth consecutive time after lifting them by 2.9 percentage points from their historic low of 0.1 per cent last December to their present level of 3 per cent.

Inflation fell from its 41-year high of 11.1 per cent in October to 10.7 per cent last month due to a slowdown in the growth of fuel prices, the latest Office for National Statistics figures show.

The chancellor said inflation was the main enemy that: "makes everyone poorer".


He also added that it is vital that we get it under control.

The Times