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.
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.
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