Bank of England increases interest rate to 5%

The Bank of England’s Monetary Policy Committee has increased UK interest rates to a five-year high of 5%, up from 4.75%.

Matthew Wyles, group development director at Portman, says: “This rate increase was a racing certainty and has already been factored into the pricing of most fixed rate mortgage products.

“It’s clear that the MPC intends to ratchet rates upwards until our exuberant housing market loses some of its momentum. The impact of this strategy on less resilient sectors of the economy will be considerable.”