The Bank of England has defied forecasts for a lesser increase in interest rates and instead boosted them to 5%, inflicting a further blow to homeowners who are struggling to keep up with the ballooning mortgages that they have taken out.
This is the 13th time in a row that the basic interest rate has been raised by the central bank, and it comes at a time when the rate of inflation has unexpectedly stayed static, standing at 8.7 percent for the last month. This particular increase comes at a time when the basic interest rate has been raised by the central bank.
The Consumer Price Index had hit its greatest point of 11.1% in October of the previous year, and economists forecasted that it would decrease to 8.4% in the next month after reaching its highest position ever.
Andrew Bailey, the Governor of the Bank of England, is coming under fire from Jeremy Hunt’s economic advisers for his inability to bring inflation under control. They are criticizing Bailey for his inability to bring inflation under control.
Leading economists have blamed Mr. Bailey of exacerbating the mortgage crisis by initially showing insufficient willingness to react to continuously rising prices. Three months before this claim was made, Mr. Bailey had projected that there would be a significant fall in inflation.
According to Karen Ward, a member of Mr. Hunt’s economic advisory board, the Bank of England would need to bring about a recession in order to finally get the situation regarding inflation under control. “There is no way that you can avoid dealing with it in any way.”