In this video, I reveal the market’s latest predictions on what level the Bank of England base rate will be at throughout the next 5 years.
Worryingly, the predicted peak in the BOE base rate is higher than was predicted just a few weeks ago.
On 11th May 2023 the Bank of England (BOE) raised the base rate from 4.25% to 4.5%, its highest level in over 14 years. The BOE raised interest rates in an attempt to reduce the UK's annual inflation rate, which now sits at 10.1%, well above the target rate of 2%.
Currently the average interest rate on a 2 year fixed-rate mortgage is 5.34%, assuming a 75% loan-to-value, but if the BOE increases its base rate faster than expected mortgage rates may rise further.
The Bank of England will next meet on 22nd June 2023 to decide what level interest rates should be set at.
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