Base rate increases to 0.75%, what does this mean for you?
The decision could have an effect on your savings, ISA, mortgage, and disposable income.
The Bank of England (BOE) raised interest rates today from 0.50% to 0.75%.
This decision can be largely owed to Russia’s invasion of Ukraine, which will likely push inflation in the UK higher.
“Higher interest rates are supposed to help cool inflation, but prices have risen due to reasons largely outside of the Bank of England’s and the Government’s control - the cost of petrol, food and other day-to-day items is rising because of global events,” said Annabelle Williams, Personal Finance specialist at Nutmeg.
“Although this is a small increase to interest rates which have been hovering close to record lows for many years now, many will be looking to see if the increase is passed on to consumers through higher savings rates,” she said.
This is the first time the Monetary Policy Committee (MPC) has raised rates on three successive meetings in more than two decades. With this in mind, how can these rate increases affect your personal finances?
The decision could have an effect on your savings, ISA, mortgage, and disposable income.
