The Bank of England has elevated UK interest rates by 0.5 proportion factors to a 15-year high of five percent. This is the thirteenth consecutive enhance within the fee and means mortgage debtors face stress to make bigger repayments.

Economists had forecast that the Monetary Policy Committee would agree on a 0.25 proportion level enhance however higher-than-expected inflation meant an even bigger hike. The committee voted 7-2 in favour of the larger enhance, explaining that it will assist deliver inflation below management.

The UK’s official inflation fee for May remained increased than anticipated at 8.7 percent in May, a lot increased than the Bank of England’s goal of two %.

Speaking in regards to the rise, Chancellor Jeremy Hunt mentioned: "High inflation is a destabilising force eating into pay cheques and slowing growth. Core inflation is higher in 14 EU countries and interest rates are rising around the world, but the lesson from other countries is that if you stick to your guns, you bring inflation down.

“Our resolve to do this is watertight because it is the only long-term way to relieve pressure on families with mortgages. If we don't act now, it will be worse later.”

The interest rate announcement on Thursday, June 22, is another blow to homeowners struggling with rising mortgages.

An adviser to the Chancellor has said that the Bank of England would need to trigger a recession to bring down inflation.

JP Morgan Economist Karen Ward warned on BBC Radio 4’s Today programme: “They have to create uncertainty and frailty, because it’s only when companies feel nervous about the future that they will think ‘Well, maybe I won’t put through that price rise’, or workers, when they’re a little bit less confident about their job, think ‘Oh, I won’t push my boss for that higher pay’.”

In a poll that ran from 10.30am on Wednesday, June 21 to 2.30pm on Thursday, June 22, Express.co.uk asked readers: “Should the Bank of England cut interest rates despite rising inflation?”

A total of 1,536 votes were received and readers were divided with 51 percent (783 people) answering “yes” in comparison to 48 percent (734 people) who said “no” interest rates should not be cut. A further one percent (19 people) said they did not know.

In the comments below the accompanying article, dozens of readers shared their ideas on reducing rates of interest.

Some readers argued that rates of interest needs to be minimize, with username Contax139 writing: “Still far too low, check historic rates to see you are getting off easy, your fault if you over-borrowed when it was dirt cheap to borrow.”

While many commenters thought that cuts wouldn't be truthful and had been sceptical about reducing rates of interest, with username Taxed to Death writing: “If people have borrowed too much, it is not fair to expect the rest of society to have to put up with increasing inflation simply because they are over-extended. They need to cut back, or sell up.”

Another, username nevervotingliblabcon took an analogous stance, saying: “Nope, if people chose to borrow borrow borrow thinking these low interest rates would last forever then they only have themselves to blame.”