Interest rates in the UK to rise again? check details 

Interest rates in the UK are expected to jump for the 14th time in a row as the Bank of England continues its fight to prevent stubbornly high price rises.

Most economists have expected the Bank will raise rates to 5.25% from its present 5% at midday on Thursday.

Bank of England to raise interest rates in UK again? 

That would mean higher interest rates on mortgages and loans for several people and higher savings rates. UK inflation, the rate at which costs rise, stays elevated and puts families under pressure.

The last time interest rates were at 5.25% was 15 years back, in April 2008. Nevertheless, a climb to 5.25% would mark a more minor increase than July’s dramatic climb to 5% from 4.5% and follows signs that price rises have started to relax.

Inflation dipped by much more than anticipated in June and, at 7.9%, is at its lowest level in over a year but stays around four times higher than the Bank of England’s 2% target.

Pantheon Macroeconomics said this meant policymakers would not require to jump interest rates as much as earlier thought.

By making borrowing more costly, the Bank’s purpose is that people will spend less money, meaning households will purchase fewer things and then price rises will reduce.

But it is a balancing act as increasing rates too aggressively could cause the economy to sink, but not increasing them at all could lead to inflation growing even more.

Free market think tank the Institute of Economic Affairs (IEA) said the Bank should wait for the last interest rate climbs to take effect before growing rates further.

”It will take some time for previous rate rises and falling global commodity prices to feed into lower inflation.”