Interest rates are up again – but the peak is close

More pain for businesses and mortgage holders as the Bank of England warns of stubbornly high inflation, writes James Moore. But there is some light at the end of the tunnel

The Bank of England has raised interest rates for the 10th time in a row, lumping further pressure on mortgage borrowers (PA)

The US Federal Reserve might have moved into the interest rate slow lane – with a rise of 0.25 percentage points – but the Bank of England still has its foot on the pedal.

The rate-setting Monetary Policy Commitee (MPC) thinks inflation has peaked but inflationary pressures remain naggingly persistent and unexpectedly strong. The 0.5 point base rate increase it imposed as a result was the 10th in a row and brings them to their highest level for 14 years.

That bears repeating because the rate at which interest rates have risen is quite remarkable. But then, so is the sudden surge in inflation. The devastating consequences of the latter can be seen by taking a trip to your local food bank.