Bank of England boss warns of more financial pain to come after yet another interest rate rise
Homeowners have been warned things could get even worse as the Bank of England said it could not rule out further interest rate rises in a bid to bring down rampant inflation. Families already crippled by soaring food and energy prices were yesterday dealt another blow with mortgage repayments rising due to another rate hike, the Mirror reports.
Bank of England Governor Andrew Bailey insisted the punishing wave of prices of goods has peaked and will 'fall sharply' when figures for April are released later this month. But despite the optimistic outlook, it did not stop the Bank voting to jack up interest rates from 4.25% to 4.5% – the highest since the 2008 financial crisis and the 12th in a row – sparking fury. Financial markets expect the rises to hit 5% by the end of the summer.
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Mr Bailey, who earned nearly £600,000 last year, said it was 'too soon to say' if the Bank will announce more rate rises. Flanked by colleague Katie Martin, he added: “It’s our job to get inflation back down to the 2% target and to stay there. We’ll make whatever decisions are needed to ensure that happens.”
Mr Bailey also insisted if the Bank does not raise interest rates thing would be 'much worse'. The interest blow comes after former PM Liz Truss's disastrous mini-Budget last September triggered a spike in the cost of new fixed rate mortgages due to her unfunded tax cuts for the rich.
Angry homeowners told on radio shows yesterday of their anguish caused by the latest interest rate rise. On LBC, caller Rachel in Bristol said: “I haven’t lived at my home since I was 25, I’m now 43 this year and I’m actually going to be selling my house and moving back in with my
