Another interest rate rise
May 10, 2007 by admin
Filed under News, News-Credit-Cards
Interest rates are the highest they have been since April 2001 after the bank of England announced yet another rise.
The 0.25 per cent increase is the fourth rise since last August and is bad news for borrowers up and down the country.
Many experts had been predicting the Monetary Policy Committee’s (MPC’s) decision and some had even forecast a bigger increase of 0.5 per cent.
The rate rise was brought in to keep inflation in check and recent figures show that inflation is currently at record levels.
People with a mortgage, credit card or loan will be disappointed with the decision and will need to keep an eye on their finances to ensure that they can keep up repayments.
Someone with an £80,000 mortgage can expect to see their monthly payments increase by around £12, while those with a £200,000 mortgage will see payments rise by £30.
Experts are also warning that this is unlikely to be the last interest rate rise, with economists predicting more to come in the months ahead.
