The Bank of England has said Interest rates will stay higher for longer for the first time, in an effort to battle soaring price rises.
The Bank revealed the tactic to try and curb the rising cost of living as it raised rates again to 5.25% from 5%.
It is the 14th increase in a row and takes borrowing costs to a fresh 15-year high.
The Bank also cut its forecasts for economic growth but said the UK would continue to avoid a recession.
Today, the Bank signalled for the first time that it would keep interest rates elevated and that they would remain higher until it got UK inflation under control.
Inflation slowed substantially to 7.9% in June, but remains nearly four times higher than it’s expected to be.
The Bank said interest rates would remain high enough for as long as needed “to return inflation to the 2% target sustainably”.
The Bank also admitted that it could take slightly longer for inflation to slow
