Bank of England raises interest rates to 1.75 per cent - the biggest hike in 27 years

manchestereveningnews.co.uk:

Millions of households will be hit with yet another interest rate rise after the Bank of England's latest announcement. Today (August 4), the UK's central bank revealed that interest rates will soar to 1.75 per cent in what is the biggest rise in almost three decades.

Members of the Bank’s Monetary Policy Committee (MPC) voted to increase rates from 1.25 per cent to 1.75 per cent which is now the sixth consecutive interest rate rise and the highest hike since 1995.

In the MPC's meeting back in June, a majority of 6-3 voted to increase the Bank Rate by 0.25 to 1.25 per cent, with members in the minority wanting to increase the rate by 0.5 percentage to 1.5 per cent.

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The Bank of England's announcement comes after experts warned that inflation could peak at 15 per cent, therefore the interest rate rise is set to try to bring inflation back under control.

Today's interest rise hike will be yet another blow for households struggling amid the ongoing cost of living crisis, as many people are set to see their monthly mortgage repayments affected.

James Forrester, m anaging director of estate agents Barrows and Forrester said: "The situation for homeowners is pretty desperate right now and rising inflation has already pushed many households to breaking point, as they’ve battled to manage the increased cost of living. Unfortunately things look set to get quite a bit worse before they get any better, with inflation predicted to hit 15% by spring next year.

"As a result, the cost of homeownership will become even less affordable, pushing it further out of reach for those already struggling with the financial hurdles of buying