The Bank of England is anticipated to increase interest rates from 3.75% to 4% at its upcoming meeting, marking the first hike in over three years. This shift comes as inflation pressures have intensified globally due to recent geopolitical conflicts, particularly affecting energy prices.
The rise in interest rates will impact millions of borrowers, particularly those with mortgages linked to the Bank's base rate. Homeowners could see their monthly repayments increase, with significant implications for household budgets and spending patterns across the UK economy.