Biggest rise in interest rate in 27 years

The Bank of England (BoE) has been forced to act by surging inflation driven by soaring energy and fuel costs that have spiked since Russia invaded Ukraine in February.
 
BoE has once again raised interest rates by half a percentage point in the biggest increase in the cost of borrowing for 27 years, adding totally around £62 to the monthly cost of a typical £250,000 London mortgage.
 
It is the sixth consecutive hike from the Bank’s Monetary Policy Committee (MPC) since December and lifts its key lending rate from 1.25 per cent to 1.75 per cent.
 
The move, which was widely expected, will mean an immediate increase in mortgage bills for millions of homeowners on tracker or variable mortgages that move in line with the Bank of England rate. Around three quarters of mortgage holders are on fixed rates but face having to remortgage at much higher costs when their deals expire.
 
Last week, the US Federal Reserve increased its benchmark rate by 0.75 per cent in its fourth rise of the year. A week before that the European Central Bank, which is in charge of setting interest rates in the Eurozone, pushed its key rate up by 0.5 per cent.