Entire generation of borrowers weaned on ultra-cheap rates is facing a serious reality checkIt is now exactly a year since the Bank of England started raising interest rates from a record low of 0.1%. Threadneedle Street has increased the cost of borrowing at each of its nine meetings since December 2021 and after the latest 0.5 point jump they now stand at 3.5%.By historic standards that seems nothing to get worked up about. In the period between 1997 – when the Bank was granted its independence – and the start of the financial crisis a decade later interest rates never dropped below 5%. In the 1970s, 1980s and early 1990s, official borrowing rates were often well into double digits. Continue reading…
Source : theguardian.com
Read more…Speed of UK interest rate rises will dent an already weak economy
