The UK Interest Rates have been increased further as the Bank of England attempts to stem the pace of the increasing prices and the rates have also increased from 1 percent to 1.25 percent, which has been fifth consecutive increase along with pushing them to the highest level in around 13 years.
It comes as the finances are now being squeezed by the increasing cost of living and is also driven by the record energy and fuel prices and the Inflation, which is the rate at which the prices increase has currently been at a high of 40 years of 9 percent and the Bank of England has also warned that, it can possibly surpass by 11 percent later in 2022.
The bank said that, the increasing energy prices had been expected for driving the living costs even higher in the month of October 2022 but has also added that, it is going to act forcefully if it had been necessary and the inflation pressures have been persisting. The capital economics has also speculated that, the Bank of England can eventually have to increase the interest rates to 3 percent.
The rise in the June 2022 interest rates means that, the owners of the houses with a typical trackers mortgage is going to be have to pay around 25 pounds more a month and those on the standard variable rate mortgages is going to be seeing an increase of 16 pounds.