Homeowners have been warned things could get even worse as the Bank of England said it could not rule out further interest rate rises in a bid to bring down rampant inflation. Families already crippled by soaring food and energy prices were yesterday dealt another blow with mortgage repayments rising due to another rate hike, the Mirror reports.
Bank of England Governor Andrew Bailey insisted the punishing wave of prices of goods has peaked and will 'fall sharply' when figures for April are released later this month. But despite the optimistic outlook, it did not stop the Bank voting to jack up interest rates from 4.25% to 4.5% – the highest since the 2008 financial crisis and the 12th in a row – sparking fury. Financial markets expect the rises to hit 5% by the end of the summer.
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