Bank rates expected to rise today

Bank rates expected to rise

Bank rates expected to rise . Credit: frycyk01/

It will be the twelfth consecutive time the Bank of England has raised its rates.

if as expected, the rate will go up from 4.25 per cent to 4.5 per cent today (Thursday 11 May).

The hikes in interest rates have been an attempt to control inflation which currently stands at above 10 per cent.

The rise will benefit savers but will increase costs for borrowers.

Could interest rates continue to rise? The rate is already at its highest in fourteen years. It has gone up in response to the cost of living as food prices have increased at the fastest rate for forty-five years.

Rates will rise in an attempt to control inflation which was down to 10.1 per cent in March from 10.4 per cent in February.

The bank rate increases have been applied since December 2021.

Some economists predict we may see another one or two more interest rate hikes, but we are close to seeing an end to them.

The Bank meets to discuss interest rate rises eight times a year and is under pressure to reduce inflation to 2 per cent, but at the moment prices are rising more than five times that figure.

Mortgages will be affected by the new interest rates. People can expect to pay more. An average increase will be between fifteen and twenty-four pounds a month. Those who have a fixed-rate mortgage won’t see any change.

By raising interest rates inflation is controlled, but rates should not be so high as to slow the economy down completely. Since 2008 UK interest rates have been at historically low levels, but at the moment people will have to get used to paying more.

Thank you for taking the time to read this article. Do remember to come back and check The Euro Weekly News website for all your up-to-date local and international news stories and remember, you can also follow us on Facebook and Instagram.

Written by

Julia Cameron

Julia is an ex-pat writer from Brighton living in a small village close to the Andalucian town of Priego de Cordoba. When she's not working she enjoys reading, tracing her ancestry and swimming. She especially loves the summer when she can get down to the coast and chill on the beach.