A further Bank of England base rate rise was expected to be announced today, but a “double” hike has taken many by surprise.
The recent 0.25% rises have not been enough to bring inflation under control, resulting in 7 out of the 9 members of the Monetary Policy Committee voting for a 0.5% increase this month.
The base rate now stands at 5%, the highest level in 15 years.
Inflation
The decision comes as the rate of inflation remains at 8.7%, higher than the predicted 8.4%.
Mortgage time bomb?
This will not be welcome news to homeowners and those looking to get on the housing ladder, who will now be facing a mortgage crisis.
