The Bank of England raised interest rates to 1.25%.

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.

  1. The Bank of England has raised interest rates from 1% to 1.25% as it tries to get a handle on soaring inflation
  2. The rate rise follows another last month, when rates increased from 0.75% to 1% – they are now at the highest since 2009
  3. Variable rate mortgages will go up by £12 a month per £100,000 worth of borrowing, says personal finance expert Martin Lewis
  4. Raising the interest rate is one way to curb inflation – by making borrowing more expensive and encouraging people to spend less
  5. 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
  6. Raising the interest rate makes mortgages and loans more expensive but increases the return on savings
  7. Yesterday, the US central bank announced its biggest rate hike in nearly 30 years to tackle surging inflation

Source BBC news

Dorchester Chamber for Business

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