Yes, the worst may be over, but high interest rates are here to stay

After 14 consecutive rises, the Bank of England has finally hit pause on increasing interest rates, writes James Moore. But borrowers need to batten down the hatches – cheap credit isn’t coming back anytime soon

The Bank of England started raising dates in December 2021 (Yui Mok/PA) (PA Wire)

The Bank of England’s rate-setting Monetary Policy Committee (MPC) has finally called a surprise pause, holding fire with interest rates at 5.25 per cent after 14 consecutive rises.

So can borrowers breathe? Maybe. But not yet easily.

Inflation has, at last, started to move in the right direction, with the most recent figures showing prices rising at 6.7 per cent per year, when the Bank had expected an increase to 7.1 per cent.