The Financial Policy Committee (FPC) works to ensure the UK has a stable financial system. A stable financial system enables households and businesses to make payments, manage their savings, borrow money, and guard against risks. It can withstand shocks rather than make them worse. The FPC identifies vulnerabilities and acts to build the resilience of the system. In recent months, interest rates have continued to increase as central banks around the world act to tackle inflation. Since December 2021, the Bank of England interest rate (Bank Rate) has increased from 0.1% to 5%. Returning inflation sustainably to the 2% ... (full story)