The Bank of England has increased interest rates for the third time this year to 0.75% to counter higher living cost prices.
As the UK economy recovers from COVID-19 and businesses continue to settle into the ‘new normal’, living costs have continued to skyrocket.
The rise from 0.5% to 0.75% means rates are now at their highest level since March 2020, when Covid lockdowns began.
Energy bills and food costs are increasing and with supply chain issues throughout the world, prices could increase further.
The Bank of England has also warned inflation, the rate at which prices rise, may reach 8% and possibly higher, in the coming months.
So, what does this mean for consumers?
About two million households will see an immediate increase in their mortgage payments because of the rise in rates, according to UK Finance.
The increase will add about £26 a month to the cost of a typical tracker mortgage, and £16 to the cost of a typical standard variable rate mortgage.
It also warned that inflation could hit double-digits later in the year if energy prices push up the energy price cap.
To get further information about this news story, email email@example.com, call 0115 958 6872 or fill in an enquiry form below.
The chancellor has announced his financial update, here are the main points from the autumn statement.
Leanne Leslie, a senior operations manager for MAF Finance Group (MAF), has been named as a recipient of this year’s Women in Supply Chain Award.
High inflation has been caused by a series of big shocks to our economy.
MAF Finance Group has established a base in Edinburgh to strengthen its presence in Scotland. They has also appointed experienced...
The UK's inflation rate has dropped to a 15-month low of 7.9%. This decrease has eased concerns for Bank of England (BoE) policymakers...
Due to an excess of supply in the market, prices of second-hand electric cars are plummeting as more people trade them in...