Homeowners brace for impact as inflation persists and interest rates inch towards 5%

After experiencing a series of interest rate hikes due to the Bank of England’s efforts to curb rising prices, homeowners are dealing with an additional setback following the unexpectedly high inflation rates, which has raised concerns that interest rates may increase to 5 per cent. The current interest rates, which determine the cost of borrowing, are at 4.25 per cent. It was predicted that they would peak at 4.5 per cent and gradually return to more typical levels in the coming year. However, inflation rates stayed in the double digits in March despite economists predicting a decline to 9.8 per cent, prompting traders to increase their bets on rising interest rates.