• About
  • Advertise
  • Privacy Policy
  • Contact
Thursday, October 23, 2025
  • Login
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships
No Result
View All Result
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships
No Result
View All Result
The Vaultz News
No Result
View All Result

Bank Of England To Raise Interest Rates

M.Cby M.C
June 21, 2023
Reading Time: 4 mins read
M.Cby M.C
in UK
0
Bank Of England To Raise Interest Rates

Bank of England.

Following the release of official numbers which indicated that, inflation did not decline as expected in May, lenders in the U.K. would be preparing for more hikes in loan prices.

According to the Office for National Statistics(ONS), consumer price index inflation remained stable at 8.7% in the year to May, defying standards for a small drop to 8.4%. This development suggests that, the politically independent Bank of England will increase borrowing costs once more on Thursday.

Office for National Stats
Office For National Statistics.

According to the ONS, the inflation rate was pushed up by rising airfares, the cost of leisure and cultural goods and services, and the price of used automobiles, while gas costs exerted the greatest downward pressure.

RelatedPosts

UK Criticised Over Delayed Decision On China’s Mega Embassy

Decision On China Mega Embassy Site In London Postponed Again

UK Set To Be This Year’s Second-Fastest-Growing G7 Economy

The Bank of England’s reluctance to hike interest rates, and the UK’s exit from the European Union, which increased business expenses, are two factors that many believe, are to blame for the country’s higher than average rate of inflation. The United States’ inflation rate is now at 4%, while the average for the 20 EU nations that utilize the euro is 6.1%.

According to the financial markets, if the rate remains steady, the Bank of England is expected to raise its benchmark interest rate from its present 15-year high of 4.5% to 4.75%.

Also, some economists believe that, the bank, which is in charge of controlling inflation at or below 2%, could opt to hike its benchmark values even more, to 5%. Higher interest rates aid in controlling inflation by making borrowing costlier for individuals and firms, and could lead to them spending less and reducing the pressure on prices.

ADVERTISEMENT
Debapratim De senior economist at Deloitte
Debapratim De, Senior Economist at Deloitte.

“This makes a rate increase by the Bank of England this week near certain and materially increases the likelihood of further rises well into autumn,” said Debapratim De, senior economist at Deloitte.

However, further pressure from the predicted increase would force financial institutions to raise their own lending rates for loans and mortgages. Additionally, it would fuel new doubts about the prospects for Britain’s economy, which is hardly expanding.

The Conservative administration maintains that, bringing inflation under control is the top economic priority, despite polls showing it lagging behind the main opposition Labour Party ahead of a possible general election next year.

Treasury Secretary Jeremy Hunt said
Treasury Secretary, Jeremy Hunt.

“We know how much high inflation hurts families and businesses across the country, and our plan to halve the rate this year is the best way we can keep costs and interest rates down. We will not hesitate in our resolve to support the Bank of England as it seeks to squeeze inflation out of our economy, while also providing targeted support with the cost of living.”

Treasury Secretary, Jeremy Hunt.

Due to the fact that, they refinanced their mortgages during the coronavirus pandemic, several homeowners would be protected from the latest hikes. However, looking to lock in new deals, customers whose fixed-rate terms are about to end will encounter significantly greater borrowing rates.

Jamie Elvin, Director of Mortgage Brokerage Strive Mortgages, described the situation as “a ticking time bomb” because 1.4 million borrowers might see their low fixed rates expire this year.

In contrast to the United States, where many homeowners set their mortgage rates for 30 years, the norm in the United Kingdom is for homeowners to fix the rate for considerably fewer period of time, before switching to their lender’s typically higher adjustable rate.

what happens if i miss a mortgage payment
The recent hike has been described by Mortgage brokers as a ticking time bomb.

For instance, homeowners who set their mortgage rate at less than 1% three years ago may experience a five-fold rise in their rates in the current environment.

Similar to other central banks, the Bank of England has aggressively increased borrowing rates over the past 18 months, first as a result of supply constraints brought on by the coronavirus pandemic and then as a result of Russia’s invasion of Ukraine, which drove up the price of food and energy.

READ ALSO:Western Allies Meet For Ukraine’s Post War Economic Recovery

Tags: Bank of Englandinterest ratesJeremy HuntMortgage Finance.Office For National Statistics
Please login to join discussion
Previous Post

Kishida Announces Plan To Attend NATO Leaders’ Summit

Next Post

ECOWAS Bank for Investment and Development Signs Three Loan Agreements

Subscription Form

Related Posts

China Suspends Arms Control Talks With U.S
UK

UK Criticised Over Delayed Decision On China’s Mega Embassy

October 17, 2025
China purchased the site of the proposed new embassy, at Royal Mint Court, near the Tower of London, for £255m in 2018.
UK

Decision On China Mega Embassy Site In London Postponed Again

October 16, 2025
Pakistan, IMF Reach $3 Billion Bailout Agreement
UK

UK Set To Be This Year’s Second-Fastest-Growing G7 Economy

October 14, 2025
Tories To Abolish Stamp Duty
UK

Tories To Abolish Stamp Duty

October 8, 2025
EU Launches Preparedness Union Strategy
UK

EU New Imports Quota Plan Poses Threat To UK Steel Industry

October 7, 2025
Trott Calls For Zero Tolerance Approach To Knife Crime In Schools
UK

Trott Calls For Zero Tolerance Approach To Knife Crime In Schools

October 7, 2025
Inflation Pressure Returns: Producer Inflation Creeps to 3.2% as Businesses Battle Rising Input Costs
Economy

Inflation Pressure Returns: Producer Inflation Creeps to 3.2% as Businesses Battle Rising Input Costs

by M.COctober 23, 2025
Accra Mayor Warns Traders Against Paying Unauthorised Fees
General News

Accra Mayor Warns Traders Against Paying Unauthorised Fees

by Silas Kafui AssemOctober 23, 2025
Former Vice President Dr. Mahamudu Bawumia
General News

63 Plus 2 NPP MPs Declare Support for Bawumia’s 2026 Flagbearership Bid

by evansjrOctober 23, 2025
Restoring Water Bodies Remains Priority – Lands Minister
Extractives/Energy

Restoring Water Bodies Remains Priority – Lands Minister

by Bless Banir YarayeOctober 23, 2025
Nana Konadu Agyemang-Rawlings: Trailblazer in Women’s Emancipation — Political Analyst
General News

Nana Konadu Agyemang-Rawlings: Trailblazer in Women’s Emancipation — Political Analyst

by Emmanuel Tibila BoasahOctober 23, 2025
Energy Minister, GECA Collaborate
Extractives/Energy

Energy Minister Engages Electrical Contractors on Safety and Regulatory Reform 

by Prince AgyapongOctober 23, 2025
Inflation Pressure Returns: Producer Inflation Creeps to 3.2% as Businesses Battle Rising Input Costs
Accra Mayor Warns Traders Against Paying Unauthorised Fees
Former Vice President Dr. Mahamudu Bawumia
Restoring Water Bodies Remains Priority – Lands Minister
Nana Konadu Agyemang-Rawlings: Trailblazer in Women’s Emancipation — Political Analyst
Energy Minister, GECA Collaborate

Recent News

Inflation Pressure Returns: Producer Inflation Creeps to 3.2% as Businesses Battle Rising Input Costs

Inflation Pressure Returns: Producer Inflation Creeps to 3.2% as Businesses Battle Rising Input Costs

October 23, 2025
Accra Mayor Warns Traders Against Paying Unauthorised Fees

Accra Mayor Warns Traders Against Paying Unauthorised Fees

October 23, 2025
Former Vice President Dr. Mahamudu Bawumia

63 Plus 2 NPP MPs Declare Support for Bawumia’s 2026 Flagbearership Bid

October 23, 2025
Restoring Water Bodies Remains Priority – Lands Minister

Restoring Water Bodies Remains Priority – Lands Minister

October 23, 2025
Nana Konadu Agyemang-Rawlings: Trailblazer in Women’s Emancipation — Political Analyst

Nana Konadu Agyemang-Rawlings: Trailblazer in Women’s Emancipation — Political Analyst

October 23, 2025
Energy Minister, GECA Collaborate

Energy Minister Engages Electrical Contractors on Safety and Regulatory Reform 

October 23, 2025
The Vaultz News

Copyright © 2025 The Vaultz News. All rights reserved.

Navigate Site

  • About
  • Advertise
  • Privacy Policy
  • Contact

Follow Us

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2D
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships

Copyright © 2025 The Vaultz News. All rights reserved.

Discover the Details behind the story

Get an in-depth analysis of the news from our top editors

Enter your email address