The base rate had fallen to 0.1% on 19 March 2020 from 0.25%-a rate it had dropped to on 11 March 2020. Prior to this, the base rate had been at 0.75% since 2018. The MPC last voted to keep the base rate at 0.1% at its meeting on 4 November 2021.
But the Bank has been under pressure to raise the base rate in a bid to curb rising inflation. Forecasts from the Office for Budget Responsibility (OBR) predicted in October that the base rate could rise to 3.5% if inflation continues to rise, while the consumer prices index (CPI) measure of inflation for the year to November was this week confirmed to have risen from 4.2% to 5.1%.