How high will UK interest rates go? - April 2023
For updated version, click here - • How high will UK interest rates go? - May ...
On 23rd March 2023 the Bank of England (BOE) raised the base rate from 4% to 4.25%, its highest level in 14 years.
The BOE raised interest rates in an attempt to reduce the UK's annual inflation rate, which now sits at 10.4%, well above the target rate of 2%.
The market is pricing in further interest rate hikes in 2023, predicting that the Bank of England base rate will rise as high as 4.6% by August 2023 before slowly falling over the next five years to around 3%. Worryingly, this predicted peak in the BOE base rate is higher than was predicted just a few weeks ago as concerns grow that the BOE might have to raise the base rate more aggressively than previously thought to combat inflation, which unexpectedly increased in February.
Currently the average interest rate on a 2 year fixed-rate mortgage is 5.85% but if the BOE increases it base rate faster than expected, mortgage rates will rise further.
The Bank of England will next meet on 11th May 2023 to decide what level interest rates should be set at. Below I explain what you should be doing now before going on to explain what will ultimately determine when interest rates will go up.
In this video, I give my latest predictions on whether the Bank of England base rate is likely to increase in the coming months and if so, by how much.
Use our Mortgage Repayment Calculator to quickly calculate the impact of an interest rate rise on your mortgage payments
https://moneytothemasses.com/mortgage...
More information can be found in our article https://moneytothemasses.com/owning-a...
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