Markets think the Bank of England will unveil the biggest hike in interest rates for over three decades when its decision makers gather for a delayed meeting. The Monetary Policy Committee (MPC) is expected to increase rates by 0.75 percentage points to 2.5% - it would be the highest interest rate that the UK has had since the financial crisis.
As a result, Martin Lewis is warning that credit card and loan interest rates may be about to get worse quickly. Writing in the latest edition of the MoneySavingExpert.com (MSE.com) newsletter, he said: “UK interest rates are expected to rise again tomorrow (Thu) for the sixth successive time. The current 1.75% base rate may go up as high as 2.25%, which'd be the highest rate in fourteen years.”
He added that while most of the focus following the announcement will be on the impact on variable rate mortgages, the consumer champion is urging people with loan or credit card debt to consider switching lenders to take advantage of a 0% balance transfer.
