UK interest rates expected to rise for 14th time in a row

The Bank of England is expected to raise interest rates for the 14th consecutive time in an effort to control high price increases.

Most economists predict a rate increase from the current 5% to 5.25% at midday on Thursday.

This would result in higher interest rates on mortgages and loans for some people, but also higher savings rates.

The UK inflation rate remains high, putting pressure on households.

The last time interest rates were at 5.25% was in April 2008, but this increase is smaller than the dramatic rise to 5% from 4.5% in July.

Inflation fell more than expected in June and currently stands at 7.9%, the lowest in over a year, but still far above the Bank of England’s 2% target.

Experts believe policymakers may not need to raise interest rates as much as previously thought due to these easing inflation signs.

The Bank aims to reduce spending by making borrowing more expensive, leading to fewer purchases and easing price rises.

However, striking the right balance is crucial, as raising rates too aggressively could cause an economic slump, while not raising them at all could worsen inflation.