Rolling coverage of the latest economic and financial news, including the Bank of England’s interest rate decision at noon
Bank of England poised to raise UK interest rates to 5.25%TUC urges Bank of England to halt ‘reckless’ interest rate increases
“It’s a bloodbath, that’s the way I’d like to describe it,” says one father of two struggling with the ever-increasing interest rate on his home loan.
He is one of the 1.4 million people in the UK on a variable rate residential mortgage, who have watched the monthly payments soar after the Bank of England raised the base rate 13 times in a row to 5%.
Turning to the UK, prime minister Rishi Sunak was reported stating that he felt inflation was not falling as fast as he would like. This came ahead of the BoE monetary policy decision later today.
Our economists are expecting a 25bps hike to bring the policy rate to 5.25% and looking ahead, we see two further quarter point rate hikes, with the terminal rate at 5.75%.
