英國

First UK rate rise in a decade will be a slow burn

The first interest rate rise in over a decade will be a novelty for households and businesses, but it is likely to take some time before many borrowers notice the difference.

Changes in borrowing patterns mean that many consumers and companies will be less immediately exposed to higher rates than they were in the past.

By increasing its benchmark rate on Thursday by a quarter of a percentage point to 0.5 per cent, the Bank of England’s objective is to suppress inflation, which is running above its 2 per cent target.

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