The Financial Services Digest reports that the Bank of England has cut interest rates for the third time since December in an attempt to keep the inflation rate under control.
The Bank of England's Monetary Policy Committee (MPC) voted to reduce the official base rate paid on commercial bank reserves by 0.25 percentage points to 5%. The inflation rate rose to 2.5% in February and the committee has said that it expects inflation to increase further this year on the back of higher energy and food prices.
UK MPC cuts rates to fight inflation
The Bank of England has cut interest rates for the third time since December in an attempt to keep the inflation rate under control.
The Bank of England's Monetary Policy Committee (MPC) voted to reduce the official base rate paid on commercial bank reserves by 0.25 percentage points to 5%. The inflation rate rose to 2.5% in February and the committee has said that it expects inflation to increase further this year on the back of higher energy and food prices.