THE Bank of England raised UK interest rates to their highest level for 14 years.

It increased interest rates to 3.5 per cent from three per cent.

The rise will mean higher mortgage payments for some homeowners and those with loans at a time when people are struggling with the cost of living.

Mark Casci, head of policy and representation at West and North Yorkshire Chamber of Commerce, said: “While widely-expected, today’s interest rate increase to 3.5 per cent will mean more pressure for companies in Bradford who are facing rises in costs at every turn.

“There is some evidence that inflation may now be easing so it is crucial that any further interest rate movement does not worsen the recession the UK is now entering.

“Only business investment and growth will solve the stagflation problem. Firms need to see concrete actions on the measures that produce the right environment to invest, such as infrastructure, skills, and trade.”

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