Insider: December 2022

1 min read

The Bank of England (BoE) decided to increase the base interest rate from 2.25% to 3% last month in a bid to curb inflation.

The 0.75 percentage point rise is the largest hike since 1989 and the eighth consecutive increase since December 2021.

Updated projections from the Bank’s Monetary Policy Committee (MPC) indicated that the UK would face a “very challenging” two year recession, with unemployment potentially doubling by 2025.

With inflation climbing at its fastest rate in 40 years, the BoE hopes that raising interest rates will reduce inflation by increasing the cost of personal and business borrowing to lower demand.

While this decision will benefit savers, higher interest will place more burden on people with mortgages, credit card debt and bank loans.

Chancellor of the Exchequer Jeremy Hunt acknowledged how families and businesses would be affected by the higher rates but pledged to “restore stability” to the UK economy and deliver long-term growth.

Read more on Insider December 2022 here:

You might be interested in...

  2. Support with Making Tax Digital for Income TaxPlay icon

    21 Jan 2026

    Supporting you with Making Tax Digital for Income Tax

    How TC Group can support you with Making Tax Digital for Income Tax, covering software solutions, bookkeeping and your year-end declaration.

    Watch now

    Supporting you with Making Tax Digital for Income Tax
  4. What Is Making Tax Digital for Income Tax?Play icon

    21 Jan 2026

    What Is Making Tax Digital for Income Tax?

    Making Tax Digital (MTD) is changing the way self-employed business owners and landlords manage their tax from April 2026 onwards.

    Watch now

    What Is Making Tax Digital for Income Tax?