Interest rates increased to 0.75%

increase in interest rates

Interest rates have increased for the third time in four months as the Bank of England tries to calm the rise in the cost of living. The rate has increased from 0.5% to 0.75%. 

 

This increase means rates are now at their highest level since the pandemic began in March 2020.

 

The Bank of England has warned inflation may reach 8% and possibly even higher in the coming months.

 

Prices rose by 5.5% in the year to January and there is concern the war in Ukraine will push prices up further.

 

It is estimated that about two million households will see an immediate increase in their mortgage payments, as a result of the rise in interest rates.