Households face more misery as the Bank of England considers another rate hike
Households face more misery as the Bank of England considers another rate hike
Alarm bells have been ringing over the finances of millions of Britons as they grapple with rising interest rates, with the Bank of England once again raising the bar this week.
The Bank’s benchmark base rate is expected to rise by another quarter of a percentage point to 5.25 percent on Thursday – the 14th increase in a row.
There are fears of rising debt for families using short-term credit to cover essential costs, as well as concerns about rising mortgage costs.
According to an analysis by the Joseph Rowntree Foundation (JRF), about 2.3 million low-income families took out loans or used credit to pay household bills during the cost-of-living crisis.
Rachelle Earwaker, senior economist at JRF, said: “The cost of living crisis is entering a dangerous new phase.”
Concerns: There are fears of rising debt for families using short-term credit to cover essential costs, as well as concerns about rising mortgage costs
“Despite falling inflation, we risk the tragedy of a second wave in this crisis, as millions of people struggle to maintain their loans in the face of rising interest rates.
“The fragility of the current situation should concern policymakers around the world, but on the contrary it risks being overlooked.”