The Bank of England is set to raise interest rates for the 13th time in a row on Thursday, June 22, putting further pressure on mortgage holders in the UK. The bank is predicted to raise its base rate by at least a quarter of a percent, from 4.5% to 4.75% at noon on Thursday.
The move comes in the bank's bid to ease the cost of living crisis after Wednesday's announcement that consumer price index (CPI) inflation failed to fall as hoped in May, with the annual CPI rate stuck at 8.7% – well over the UK’s 2% target.
The bank has raised interest rates 12 times in a row in a bid to combat cost increases, with core inflation (stripping out food, energy, alcohol and tobacco) rising in May. Raising interest rates will hit borrowers' pocket at a time when mortgage holders are already facing sharp increases in costs if their current deal is ending.
