The Bank of England has pushed rates to a new 15-year peak of 5.25 per cent as it seeks to tame stubbornly high inflation, causing further pain for mortgage-holders and businesses with loans.
While last month’s improved inflation figures have buoyed hopes that the cycle of rate rises could peak by the year’s end at around 5.5 per cent, some economists now fear it may be as long as 2025 before the central bank’s rates start to fall again.
