Interest rates: more ‘trauma’ for households

Latest hike will cause ‘plenty of pain for borrowers’

Andrew Bailey speaks at the Monetary Policy Report news conference in August
Those on the 800,000 fixed-rate mortgages due to expire this year face a huge hike in monthly payments
(Image credit: Hollie Adams/Bloomberg via Getty Images)

“If it isn’t hurting it isn’t working.” That was the message from then-chancellor John Major in 1989 during a previous period when interest rate rises were used to tackle high inflation, said Larry Elliott in The Guardian.

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