The Bank of England has hiked interest rates to 3% - its highest rate in 14 years. The bank announced it was increasing rates from 2.25% to 3% on Thursday in a bid to curb soaring inflation and the ongoing cost of living crisis.
The increase means rates are now at their highest rates in 14 years and the .75% rise is the biggest single increase since 1989. It is also the eighth time in a row that the Bank has hiked interest rates after the rate of Consumer Price Index inflation rose to 10.1% in September, up from 9.9% in August. However it said on Thursday it expects inflation to fall sharply from the middle of next year.
Interest rates have been seeing increases since last year after being historically low - around 0.1% this time last year - after the 2008 crisis and the latest change will pile further worry on those with mortgages who could face paying hundreds of pounds more in costs as a result.
