The Financial Outlook for Personal Investors: The BoE raises interest rates for the 11th time in a row

Victoria Scholar of Interactive Investor discusses the MPC's decision to raise interest rates 25 basis points to 4.25%, although there were 2 votes against the move. With inflation ticking up again, the Bank is clearly still concerned about how far CPI is above its 2% target, maintaining that the UK banking system is robust, despite problems in the US and Switzerland. While savers may cheer rising rates, Victoria points out that inflation is still well above savings rates, so there's a negative real return.