Bank of England raises interest again
The Bank of England has hit interest rates in the UK once again, this time taking the rate to 5.25 percent, up by yet another quarter of a percent. Many analysts had already predicted a further interest rate hike by the Bank of England early in 2007 but most thought it would come in February, sparking further concerns that there could be yet another rise on its way. Many analysts predict that over the course of 2007 the interest rate could rise as high as 5.75 percent.
Up until August 2006 the interest rate in the UK stood at four and a half percent. In August the Bank of England raised the rate of interest by a quarter of a percent to 4.75 percent. In November the UK was hit by yet another interest rate rise of a quarter of a percent, which took the rate to five percent. And this latest rise of a quarter of a percent in interest rates has resulted in an interest rate that now stands at five and a quarter percent.
The current interest rate in the USA also currently stands at five and a quarter percent, which means that the UK rate now matches the rate in the US. In contrast to USA and UK interest rates, the European interest rates stand at just three and a half percent, although these are expected to rise to around four percent over the course of this year.
Amongst the hardest hit with the addition interest rate rise will be those currently trying to repay a high mortgage, and who may already have found it a struggle to try and meet repayments with last year’s two interest rate rises, and also first time buyers who now have to deal with extortionate property prices as well as high interest rates.
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