Brits to endure more pain as leaks reported by Fintech Express yesterday prove right as 25 basis point interest hike gets announced in the U.K. Now, the Bank of England has made it official, which marks a record 4.5% range which was last seen 15 years ago. At the moment, these hikes are already causing pain among Brits as many can now not pay their debts in time.
BoE announces the expected 25 basis points hike
The cost of living in the U.K. is set to rise again following an announcement by the Central Bank that it is raising the interest rates further to help fight inflation. It has announced a 25 basis points hike, the 12th consecutive bump, and a peak since 2008.
As expected, the Monetary Policy Committee voted for the hike by a margin of 7 to 2, saying that the inflation, particularly food costs, has failed to fall as fast as previously anticipated. The MPC also suggested that PM Rishi Sunak is on the edge of missing his target of halving the rate of the price rise by the end of Q4 2023, as CPI is projected to be 5.1 percent by that quarter.
However, BoE has upgraded its views on the market, saying that GBP is projected to be higher by 2.25 percent by the end of the three-year forecast period than predictions made in their February meeting.
More pain to already struggling Brits
Though raising interest rates is calming down inflation, it is heavily impacting the lives of British Citizens. At the end of April, over 700K homes could not pay their mortgages. It is predicted that the new raise will immediately impact the bills of around 2.2 million people signed into variable mortgages.
MPs who condemned the biggest high street banks for stepping off the loyal savers via financing plans like variable mortgages have noticed this continued trend of inflicting pain on citizens.
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