On Thursday the Bank of England made the decision to raise interest rates by a quarter of a percentage point from 0.5% to 0.75% which is the highest level since March 2009
According to the BBC this move will increase the interest costs of more than three-and-a-half million residential mortgages that are on either variable or tracker rates.
This is however great news for savers who could see a lift in their interest rates over the next coming months, however after the last rate rise in November, half of savings accounts saw no movement at all.
On Wednesday we spoke about the possibility of an interest rate rise, the bank’s Monetary Policy Committee had been expected to raise the interest rates in May, they did not due to the economy going through a weak patch at the start of the year, partly because of the harsh weather conditions we experienced.
The Bank is now confident that the dip was temporary, and that economic growth will recover from 0.2% that was seen in the first quarter to 0.4% that we have seen in the second quarter, they believe this pace will be maintained.
Governor of The Bank of England, Mark Carney had advised that there will be further interest rate rises but they will be limited and gradual.
For Further information, the full article can be found at; https://www.bbc.co.uk/news/business-45043776