UK Inflation & Interest Rates
- Mickey Perry
- Sep 19, 2024
- 1 min read
Looking at Inflation & Interest Rates between 2021, we can see that inflation rose during 2021 onwards and peaked 2022. The Bank of England reacted behind this rising inflation.
This data was compiled from:
As interest rates rose and inflation started to come down, the margin between the two narrowed, until October of 2023 when it inverted. Since then, reductions in inflation have flattened but it does still appear to be coming down slowly.
It is interesting that the Bank of England continue to keep interest rates at 5% when we now sit at an inflation rate of 2.2%.
I don’t expect interest rates to stay this high for very long, and by the end of 2025, at this stage I would anticipate interest rates sitting around 2% if not lower.
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