Interest rates UK: Bank of England hikes rate to 5% from 4.5% in fresh blow to mortgage holders

Homeowners have been hit with more misery as the Bank of England hiked interest rates by a higher-than-expected 0.5 per cent, with calls mounting for the Government to do more to help amid a deepening mortgage crisis.

The Bank lifted rates for the 13th successive time at the noon rates decision. The decision lifts the interest rate level from 4.5 per cent to 5 per cent.

Some experts had predicted policymakers may have even voted for a bigger rise to 5 per cent after Wednesday’s shock inflation figures showed the Consumer Prices Index remained unchanged at 8.7 per cent in May against hopes for a sharp fall.

The next Bank of England interest rate meeting has created more woes for mortgage payers. Picture: AFP/Getty Images/PA/Adobe

With the UK Government and Bank of England under rising pressure over their failure to rein in inflation, Prime Minister Rishi Sunak insists he feels a “deep moral responsibility” to deliver on his pledge to halve inflation by the end of the year.

Chancellor Jeremy Hunt has also said the Government would “stick to its guns” and urged patience for the Bank’s rate rises to curb inflation.

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