Messages posted by: geemong (IV09209601)

What are they and how high could they go?

The Bank of England will announce its latest decision on interest rates on Thursday, and is widely expected to raise them for the sixth time in a row.

This type of SLOTXO machine is very popular among online casino players. Because they think they have a better chance of winning when they play these games, even if it's not real.

Interest rates currently stand at 1.25%, but the central bank could increase them to as much as 1.75%. If so, that would be its highest level since December 2008.

The Bank hopes to slow the rate at which prices are increasing. It has warned that inflation could pass 11% later this year.

Why are prices and interest rates rising?
Prices are going up quickly worldwide, as Covid restrictions ease and consumers spend more.

Many firms have problems getting enough goods to sell. And with more buyers chasing too few goods, prices have risen.

There has also been a very sharp rise in oil and gas costs - a problem made worse by Russia's invasion of Ukraine.

One way to try to control rising prices - or inflation - is to raise interest rates.

How high could interest rates go?
Many analysts have predicted UK interest rates will rise this month, but further increases are also expected later in the year.

Analysts at Capital Economics think the Bank will ultimately have to lift rates to 3% to quash inflation, but other economists think they won't have to go so high. Pantheon Macroeconomics reckon interest rates will peak at 1.75%.

Last year, the Office for Budgetary Responsibility (OBR) - the government's independent economic adviser - looked at what might happen if the UK were to experience higher and longer lasting inflation.