Articles
How will a UK interest rate rise affect you?
The Bank of England (BoE) has increased the base rate to 1.75%. This is an increase of 0.5 percentage points, which is the largest single increase for almost three decades and a sign of the struggle to get inflation under control. The last time the base rate was set at 1.75% was during the financial crisis of 2008.
But how will the latest base rate increase affect you and your wallet?
Higher inflation and recession forecast
The UK is now forecasting an even higher level of inflation than first anticipated, and it has a new prediction on the possibility of a recession later this year. Learn what’s causing it and what the outcomes might be below.
USA 0.75% – 1.25% UK
The US Federal Reserve announced that it will be increasing interest rates to 0.75 percentage points after meetings took place on the 14th and 15th of June. This follows on from an increase to 50 percentage points in May. These moves are hoped to help reduce soaring inflation rates seen across the US.
Eurozone raises interest rates for the first time in 11 years
In a bid to control rising inflation, the European Central Bank (ECB) has increased its interest rate for the first time in just over a decade. This move follows other central banks in hiking their base interest rate to tackle inflation, including the Bank of England and the US Federal Reserve. But does the ECB’s rate increase put highly indebted countries at risk?
Did the Queen save us from a recession?
How these celebratory events unfolded probably prevented the UK from entering into a recession later this year. But how?
