The rise in the BoE rate to 4.5% was predicted in the markets and comes on the back of the Fed (US) and ECB (European) rate rises last week. The long-term forecast is for inflation to fall this year, but as inflation is proving harder to reduce the Bank has again, increased rates today.

What does this mean for you?

If you have a mortgage:

Fixed rate: your monthly payments won't be affected right now.

Tracker rate: you will already have seen an increase to your monthly payments and are likely to see further rises.

Variable rate: you may have seen an increase to your monthly payments.

If you have either a tracker or variable rate mortgage, your lender will be in touch to confirm your new rate and monthly payment and when this will take effect from.

As an investor:

The 2023 investment outlook from Omnis Investments can be helpful to understand dynamics at play, including interest rates, when it comes to markets and your portfolios 

https://omnisinvestments.com/news/2023/omnis-2023-outlook