The Bank of England has once again decided to raise interest rates after a meeting with members of the Monetary Policy Committee today (June 22). After a majority vote of 7-2, the base rate now sits at 5 percent after a huge 0.5 percent increase.
This is the 13th consecutive time that the Bank has hiked interest rates in the hopes of bringing inflation down to meet the target of 2 percent. The last announcement in May this year saw the MPC vote to increase the bank rate by 0.25 percent to 4.5 percent.
The 5 percent base rate is now the at highest level the UK has seen since since April 2008, putting further pressure on homeowners amid the crippling cost of living crisis. Mortgage holders are now being warned they could lose around a fifth of their disposable income as a result of the latest interest rate rise.
