Interest rates are likely to see yet another increase this week, reaching their highest rate since 2008. The Bank of England will announce its latest interest rates on Thursday, May 11, with another increase widely expected – the 12th in a row – in a bid to bring the cost of living crisis under control.
It comes after figures last month showed inflation remaining stubbornly high. The Office for National Statistics (ONS) revealed that Consumer Prices Index (CPI) inflation fell to 10.1% in March from 10.4% in February. But this was higher than the 9.8% forecast by many experts and well above the Bank of England's (BoE) target figure of 2%.
Despite rising headline figures inflation and interest rates are expected to peak shortly before falling in the coming months, although there is some uncertainty about these predictions. Here is everything you need to know about how much interest rates could rise on Thursday, what it will mean for mortgages and savings, and when rates are likely to finally fall. To get all the latest money-saving news straight to your inbox sign up here.
