Breaking: Interest Rates Hike

  1. The Bank of England has raised interest rates from 1% to 1.25% as it tries to get a handle on soaring inflation
  2. The rate rise follows another last month, when rates increased from 0.75% to 1% – they are now at the highest since 2009
  3. Variable rate mortgages will go up by £12 a month per £100,000 worth of borrowing, says personal finance expert Martin Lewis
  4. Raising the interest rate is one way to curb inflation – by making borrowing more expensive and encouraging people to spend less
  5. The UK’s inflation rate – the increase in prices for goods and services – hit 9% last month, with warnings it could top 10% this year
  6. Raising the interest rate makes mortgages and loans more expensive but increases the return on savings
  7. Yesterday, the US central bank announced its biggest rate hike in nearly 30 years to tackle surging inflation

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