This Morning: Martin Lewis gives advice on interest rates
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The Bank of England is poised to raise interest rates by the most since Black Wednesday today after the US Federal Reserve announced a steep increase in borrowing costs for an unprecedented fourth time. The US’s decision will put pressure on Bank of England Governor Andrew Bailey to follow suit with a rise of the same scale in the UK. A 0.75-point increase would take the Bank’s interest rate back to levels last reached in November 2008 – and drive up costs for millions of mortgage borrowers. It would mark the Bank’s eighth consecutive rate rise, and its largest since policymakers scrambled to protect the pound on Black Wednesday in 1992. Bank of America economist Robert Wood said: “The UK will require considerable further monetary tightening. It has the worst of both worlds: high and persistent headline inflation due to energy prices and a very tight labour market due to rising long-term sickness.” It comes after former Bank of England Monetary Policy Committee member Charles Goodhart warned the bank was “rather far behind” in terms of raising interest rates to combat inflation.
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Good morning from London. I’m Tara Fair, I’ll be bringing you all the latest developments on the Bank of England’s interest rate decision. Please feel free to get in touch with me as I work if you have a story or tips to share! Your thoughts are always welcome.
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