Bank of England Raises Interest Rate to 4.75 per cent

The Bank of England raised interest rates yesterday for the fifth time since November. The rate increase of one quarter of one per cent, to 4.75 per cent, is seen as a way of cooling the UK’s booming property market and slowing the nation’s growing burden of consumer debt.

Groups representing British businesses have warned that the latest increase could interfere with the country’s business performance and have called on the Bank of England not to increase rates any further in the coming months.

David Frost, director general of the British Chambers of Commerce, was not surprised by the increase “Business accepts that moderate rate rises may be necessary as inflationary pressures grow. But we call on the MPC to resist the clamour for a rapid tightening of monetary policy. Interest rate overkill would have damaging consequences for the rest of the economy, especially the manufacturing sector. We urge the Bank to take the concerns of UK business fully into account in its future deliberations.”