Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Bank of England raises interest rates by a half point to 5%

by June 22, 2023
June 22, 2023
Bank of England raises interest rates by a half point to 5%

The Bank of England has raised interest rates by a half point to 5% as it intensifies its efforts to tackle stubbornly high inflation, adding to the strain on households struggling with soaring mortgage costs.

In what will be seen as a major move, the Bank’s monetary policy committee increased rates for the 13th consecutive time to the highest level since April 2008. Before the decision was announced, financial markets were evenly split on whether the Bank would vote for a half-point rise or a smaller quarter-point increase.

The latest rise in borrowing costs comes after figures on Wednesday showed inflation remained unchanged at 8.7% in May, driving expectations that the central bank would have no choice but to respond. Inflation was expected to fall to 8.4%, which would still have been well above the Bank’s 2% target.

It also heaps further pressure on the government as the prime minister, Rishi Sunak, faces calls to intervene to help mortgage holders struggling with soaring bills, either directly or by forcing lenders to be more lenient.

Many households were braced for a further jump in borrowing costs after high street lenders ramped up the cost of new home loans before Thursday’s rate decision.

Millions of mortgage holders are expected to face a sharp rise in their repayments after lenders drove the cost of a typical two-year fixed-rate home loan above 6% – the highest level since Liz Truss’s disastrous mini-budget last autumn.

Borrowing costs have risen steadily since the Bank first began raising rates from a record low of 0.1% in December 2021. More than a quarter of mortgage holders are expected to come to the end of cheap deals struck before this time – leaving millions of people facing a “mortgage timebomb” of higher borrowing costs.

Read more:
Bank of England raises interest rates by a half point to 5%

0
FacebookTwitterGoogle +Pinterest
previous post
Construction hungry for new talent as one in four women open to skilled trades, new research reveals
next post
The importance of getting a workplace investigation right

You may also like

How a Trading Challenge Can Help You Earn...

November 15, 2024

UK’s biggest pub group to introduce surge pricing...

September 12, 2023

Where next? How these five industries will shape...

September 18, 2023

Food fraud probe into beef falsely labelled as...

March 10, 2023

Fintech investment slump should be welcomed by the...

April 25, 2023

How SMEs are adapting their recruitment approach to...

March 19, 2024

In-Depth Q&A with Ernesto Morales, CEO of North...

August 9, 2024

Olive oil prices set to halve as Mediterranean...

October 5, 2024

Barclays ‘banking pods’ to pop up in shopping...

January 31, 2023

50 of the fastest growing UK tech firms...

November 3, 2022

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Innovative Marketing Strategies in the UK’s Entertainment Sector

      August 15, 2025
    • Shein’s UK sales hit £2bn as fast-fashion giant eyes Sports Direct’s top-five spot

      August 15, 2025
    • How Will Current Consultations Affect the UK Gambling Industry?

      August 15, 2025
    • Engage Global Audiences: Multilingual Voiceovers Made Simple

      August 15, 2025
    • ASA bans online pharmacy adverts for weight loss injections in major enforcement drive

      August 15, 2025
    • FCA sacks 12 staff over misconduct as regulator moves to tighten industry rules

      August 15, 2025

    Categories

    • Business (8,792)
    • Investing (2,213)
    • Politics (16,389)
    • Stocks (3,228)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved