The Bank of England is expected today to raise the interest rate for the 13th time in a row, despite recent forecasts of an improving economic outlook.
A reported 1.3 million UK households with mortgages were already expecting increased costs at the start of the year. The latest data means there is more pain yet to come.
Global policymakers are battling elevated inflation caused largely by runaway energy bills following last year's invasion of Ukraine by major oil and gas producer Russia.
UK interest rates have been raised for the 12th time in a row in a further attempt by the Bank of England to slow the rising cost of living, increasing the Bank's base rate from 4.25 to 4.5 per cent.
The Bank of England and its global counterparts have ramped up interest rates to tackle sky-high inflation.
British wages rose faster than anticipated last month, in a move that economists judge may tip the Bank of England towards a further rise in interest rates next month, despite an unexpected increase in joblessness too.
Bank of England Chief Economist Huw Pill said on Thursday that the latest data on the economy, including a stagnation of gross domestic product in February, is "somewhat disappointing" even if it remains better than forecast by the BoE late last year.
Food inflation has risen by 15 per cent in a year, as prices in Britain's shops reach unprecedented levels. Experts say retailers must focus on their price differentiation strategy as consumers' purse strings "continue to feel the squeeze".
As worker shortages plague the UK economy amidst a cost of living crisis, new research shows good communication is key to talent retention.
U.S. Treasury Secretary Janet Yellen sought to reassure jittery investors that American bank deposits were safe and promised policymakers had more firepower to battle any crisis even as bank stocks resumed their slide on Thursday.
The Bank of England (BoE) raised interest rates for the 11th time in a row on Thursday, but said a surprise resurgence in inflation would probably fade fast, prompting speculation it had ended its run of hikes.
Bank of England policymakers will not have looked at Wednesday's inflation data with the same enthusiasm as sterling traders, who took advantage of a shock jump to push the pound up, confident that a rate hike this week is now a done deal.
The Bank of England and the US Federal Reserve have claimed the safety and strength of banking systems ahead of key decisions on interest rates.
Talks over rescuing Credit Suisse rolled into Sunday as UBS AG sought $6 billion from the Swiss government to cover costs if it were to buy its struggling rival, a person with knowledge of the talks said.
The Bank of England must decide next week whether to halt its long run of interest rate hikes or push them up again, probably for one last time, despite investor alarm over how banks in the United States and Europe are coping with higher borrowing costs.
Growth in pay in Britain - which the Bank of England is watching closely as it weighs up whether to pause its run of interest rate hikes next week - lost pace in the three months to January, official data showed on Tuesday.
Declining cash usage fuels current Bank of England and HM Treasury consultation on a new 'digital pound' before the end of this decade.
Bank of England rate-setter Swati Dhingra said on Wednesday that it would be prudent not to raise interest rates further, as previous increases in borrowing costs are yet to feed through into an already weak economy.
The Bank of England will decide by year end if tougher disclosure rules are needed for banks after the near meltdown in pension funds last September highlighted weaknesses in quantifying risks, it said on Tuesday.
Britain's proposals to loosen capital rules for insurers will increase the chances of an insurance company failing by 20% in a given year, the Bank of England has told lawmakers, reiterating its caution over the government's plan.
Bank of England Governor Andrew Bailey said on Wednesday it was possible the central bank had already come to the end of its rate-rising cycle, leading financial markets question whether a rate rise this month is as clear-cut as they thought.
Latest figures from the ONS reveal zero GDP growth in Q4 2022. A labour shortage is part of the problem, with the Chancellor urging people to return to work.
