Homeowners are being warned that they “shouldn’t rule out” one other hike to interest rates from the Bank of England.

Mortgage repayments have elevated considerably previously 12 months within the wake of a sequence of price rises from the monetary establishment.

Next week, the central financial institution’s Monetary Policy Committee (MPC) will meet to debate additional adjustments to the bottom price.

As it stands, the Bank of England’s base price is at 5 % and has been raised to mitigate the affect of inflation on the financial system.

One of the implications of the Bank’s resolution is that mortgage and debt compensation have been raised to the detriment of thousands and thousands of householders.

He defined: “Welcome news on UK inflation has taken a fair amount of pressure off the Bank of England to repeat the 50 basis point rate hike it implemented in June.

“Services inflation, a key metric for the Bank, dipped back in June’s data, against BoE expectations for it to remain unchanged. That was complimented by better news in other areas, including food.

“Admittedly this improved story on inflation was tempered by a recent upside surprise to pay growth, but that too was offset by further signs of cooling in the jobs market and an ongoing return of workers.

“We shouldn’t rule out a 50 basis point hike though, especially if the committee concludes they think they’ll hike again in September.”

According to the economist, markets have downgraded their preliminary predictions as how far the bottom price could be raised to.

Mr Smith added: “At the peak, investors thought rates could go as high as 6.5 percent. Now, it’s a little more than 5.75 percent, which implies three more 25 basis point rate hikes from the current five percent level.

“That seems fair, and while our formal forecast peaks a little below that at 5.5% percent we acknowledge this is wholly dependent on further progress on services inflation and wages.”

The Bank of England’s MPC will announce additional potential adjustments to the bottom price on Thursday, August 3.