The Bank of England has increased interest rates from 2.25% to 3%. This is the eighth consecutive interest rate rise and the largest single increase 1989.
These recent increases in interest rates are an attempt to control the soaring cost of living. With the consumer prices index (CPI) measure of inflation sitting at 10.1% for the year to September 2022, it is understandable that The Bank of England is taking action.
The Bank of England’s Monetary Policy Committee (MPC), who set interest rates voted as follows:
- 7 members voted to move interest rates to 3%.
- 1 members voted to move interest rates to 2.75%.
- 1 member voted to move interest rates to 2.5%.
The recent interest rate movements are clearly bad news for anyone with either:
- A variable rate mortgage or
- A mortgage which is coming towards the end of its fixed interest rate period.
However, the rate increases will be welcome news for savers who have been enduring a combination of high inflation and low interest rates.
Farrell Financial Planning are independent financial advisers (IFAs) based in Glasgow and do not give advice on inflation or future interest rate movements. However, we do offer independent advice on investments, pensions and mortgages.
Please feel free to explore our website and discover more about the advice services we offer.
All information is correct as at 03/11/22.