What the 0.75% interest rate hike means for your mortgage and savings: Bank of England ups base rate to 3% – the biggest rise for more than 30 years

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What the 0.75% interest rate hike means for your mortgage and savings: Bank of England ups base rate to 3% – the biggest rise for more than 30 years

  • The 0.75 percentage point rise is the biggest recorded since October 1989 
  • Latest rise continues the Bank’s effort to curb soaring inflation 
  • In December 2021 the base rate sat at just 0.1%
  • We discuss what it means for mortgages and savings 

By ED MAGNUS FOR THISISMONEY.CO.UK

PUBLISHED: 08:01 EDT, 3 November 2022 | UPDATED: 14:35 EDT, 3 November 2022

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The Bank of England today upped the base rate from 2.25 per cent to 3 per cent, as it continues to try and bring inflation to heel.

The 0.75 percentage point rise is the biggest base rate hike since October 1989 when the Bank of England upped it by 1.13 percentage points from 13.75 per cent to 14.88 per cent.

It is the Monetary Policy Committee’s eighth consecutive base rate hike since December 2021 – decisions which have led to a significant rise in mortgage rates and savings rates. We explain what this means for borrowers and savers and how high rates could go.

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We explain why the Bank of England is raising interest rates and what it means for the economy, mortgage borrowers and savers. 

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