Today (16 June 22) The Bank of England raised interest rates to 1.25%.
Dorchester Chamber Vice President Steve Bulley said: “The rise was not unexpected as inflation continues to be a concern for the Bank of England. It is likely that those with variable rate mortgage will pay an extra £12 per month for every £100,000 borrowed. It will be interesting to see if savings rates rise and how quickly.”
Here is a summary of the information.
- The Bank of England has raised interest rates from 1% to 1.25% as it tries to get a handle on soaring inflation
- The rate rise follows another last month, when rates increased from 0.75% to 1% – they are now at the highest since 2009
- Variable rate mortgages will go up by £12 a month per £100,000 worth of borrowing, says personal finance expert Martin Lewis
- Raising the interest rate is one way to curb inflation – by making borrowing more expensive and encouraging people to spend less
- The UK’s inflation rate – the increase in prices for goods and services – hit 9% last month, with warnings it could top 10% this year
- Raising the interest rate makes mortgages and loans more expensive but increases the return on savings
- Yesterday, the US central bank announced its biggest rate hike in nearly 30 years to tackle surging inflation
Source BBC news