Governors of the Bank of England today voted to raise interest rates by 0.75% from 2.25% to 3% – the highest one day rise in 30 years. 

The Governors of The Bank of England today voted to raise interest rates by 0.75% from 2.25% to 3-% – the highest one-day rise for three decades.

The hike means that some mortgages – especially those on tracker and variable rates – will spike once more and new deals will become less affordable to would-be movers.

In a monumental meeting some nine members of the Monetary Policy Committee made the decision that will affect millions of homeowners across the UK.

It’s the Bank’s highest single interest rate rise since 1989 as it bids to control inflation.

It is also the eighth time in a row that the Bank has increased rates – less than a year ago the rate was just 0.1%.

LAST MEETING

At its meeting ending on 21 September 2022, the MPC voted to increase Bank Rate by 0.5% to 2.25%.

In the August Monetary Policy Report, the MPC said that the risks around its projections from both external and domestic factors were exceptionally large, given the ‘very large’ increase in wholesale gas prices since May and the consequent impacts on real incomes for UK households and on CPI inflation.

The Bank said: “Since August, wholesale gas prices have been highly volatile, and there have been large moves in financial markets, including a sharp increase in government bond yields globally.

“Sterling has depreciated materially over the period.”

Via @TheNegotiator