Deloitte senior economist comments on the Bank of England's interest rate decision

Commenting on the latest interest rate decision from the Bank of England, Debapratim De, senior economist at Deloitte, said:

“Today's near-unanimous decision on raising interest rates indicates that the Bank of England sees the tightening labour market and rises in input costs as contributors to medium-term inflation risk. Given concerns around the Omicron variant and latest GDP data showing a weak start to the fourth quarter, the Bank's decision will come as a surprise to many.

“The rate rise will increase interest payments for some households but the overall effect on disposable incomes could be modest for families who have reduced expenses and accumulated savings during the pandemic.”

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Notes to editors

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