BoE set to push interest rate to 1%

The Bank of England is expected to increase the base rate by a quarter point to 1% on Thursday as officials look to ease soaring inflation. However, economists have warned by upping the rate, the Bank's Monetary Policy Committee (MPC) will add to pressure on household finances by raising the cost of loans and mortgages. Resolution Foundation research director James Smith says that when the base rate increase delivers higher mortgage and loans costs, it will mostly hurt lower income households. He said: "With Office for National Statistics data showing wages not keeping pace with rising prices, Britain's cost-of-living crisis … will continue to worsen before it starts to ease at some point next year.”

Daily Express The Scotsman