The Bank of England is expected to unveil the biggest interest rate rise since the 1980s today (Thursday November 3) as it tries to control the runaway inflation which is battering British households.
In a crunch meeting, the nine members of the Monetary Policy Committee will make a decision that could push up the amount that millions of mortgage holders have to pay their banks every month. The consequential decision is expected to push up the Bank’s base interest rate from 2.25% currently to 3%, the highest since 2008. Mortgages are decided against this rate.
If – as expected – the Bank raises interest rates by 0.75 percentage points, it would be the biggest single increase since 1989. It will also be the eighth time in a row that the Bank hikes interest rates. Less than a year ago the rate was 0.1%.
