THE BANK of England has raised interest rates from 3.5 per cent to four per cent – its highest level for 14 years.
While welcomed by savers, the higher rate will have an effect on Worcestershire residents with mortgages, credit card debt and bank loans.
The rise will see those with a typical tracker mortgage pay around £49 more a month with those on a variable rate paying around £31 a month.
While the UK economy is expected to go into recession this year, any slump is now expected to be shorter than previously thought.
The slump is now expected to last just over a year rather than almost two as energy bills fall and price rises slow
Bank of England Governor Andrew Bailey has also revealed there are signs the UK as ‘turned the corner’ on inflation despite a rise in food prices of some 16.7 per cent, adding nearly £800 to an average family’s annual food bill.