Market expectations are that the Bank will opt for a 0.25% hike, from 5% currently to a new rate of 5.25%. With similar increases in rates in both the USA and Europe recently, it seems logical to expect the UK to follow suit in pursuit of the target to bring sticky inflation under control and towards the BoE’s 2% target.
However, if that Bank is to hike interest rates again today, it would be the fourteenth consecutive rate rise and would bring interest rates to their highest level in the UK for fifteen years.
With the cost of living crisis, advisers and investment managers are rightly concerned about the impact such rises have on consumers and their budgets – especially as changes to the mortgage market and more consumers coming to the end of fixed rate deals – take effect.
We’ll be bringing you all the news and views from across the industry as soon as the announcement is made, making sure you’re aware not just of what’s been announced but also what the likely impacts will be for advice professionals and investors.
