UK households face £3bn hit if Bank goes ahead with 0.75-points rate rise

Inflation is at its highest levels since the early 1980s. Photograph: Maja Smiejkowska/Reuters

The Bank of England is considering the biggest interest rate rise in 33 years to tackle soaring inflation, a move expected to cost millions of households more than £3bn in extra mortgage costs.

City investors expect Threadneedle Street to raise interest rates by at least 0.5 percentage points, or even 0.75 percentage points, on Thursday at the next meeting of its monetary policy committee (MPC).