Money Tips Daily By Charles Kelly, Former Ifa And Author Of Yes, Money Can Buy You Happiness.

Interest rates rise as Bank of England warn of recession and 10% inflation The Bank of England has warned that the UK economy will shrink this year as it raises interest rates to try to stem the pace of rising prices. Base rates were hiked to 1% from 0.75% (50% higher), their highest level since 2009 and the fourth consecutive increase since December. With fuel, energy and food costs soaring partly due to the Ukraine war, inflation is now at a 30-year high and will reach 10% by the end of the year, according to Bank of England Governor Andrew Bailey. Ordinary people are starting to rein in spending which is hitting growth. Watch video version – Click here https://youtu.be/ccHYLfMXBwA Will higher interest rates curb inflation? Higher interest rates make it more expensive for consumers and businesses to borrow, leading to lower spending and demand. People start spending less, demand for goods and services cool slowing the pace of price rises. However, there are some economists who think that that increases in i