but it's good news for some savers.
here's our business
editor simonjack.
the road to rising interest rates
has been a very slow one, like the
tarmac on this road near lincoln,
rates have been flattened for nearly
ten years. that changed today for
one main reason, wages are on the
move. after years in the doldrums
they are rising at 2.7% per year,
faster than prices going up in the
shops, as employers struggle to
recruit and retain staff. that
prompted the bank to raise rates by
just a quarter to 0.75%.
although the economy does not look
like it is moving very fast,
according to the governor upward
pressure on prices is growing. the
overall level of pay is now finally
outstripping the rate of growth and
inflation. pay packets are growing
faster than prices online and in the
shops. what we want to do is to
ensure that that continues to be the
case, so the economy remains on
track and people who are just
starting to get ahead, those people
in work, continue to get ahead. back
on the...