The Bank of England has raised interest rates for the 11th time in 18 months, prompting fears it could plunge mortgage holders into financial difficulty. The latest increase was announced on Thursday March 23 and sees the base rate go up by a quarter of a percentage to 4.25%, the highest it has been since 2008.
The Bank of England said it expects the UK economy to grow slightly between April and June, revising a previous forecast that gross domestic product (GDP) would drop by 0.4%. The increase to rates came after CPI inflation rose to 10.4% this week, up from 10.1% in February and having hit a 41-year high of 11.1% in October.
Thursday's hike will hit millions of people's pockets, with pressure likely to increase on mortgage holders already being squeezed by ongoing cost rises. Here is what the interest rates increase is likely to mean for your money, and when rates might go down. To get all the latest money-saving news straight to your inbox sign up here.
