The Bank of England hiked base rate by a quarter of a percentage point to 5.25 per cent on August 3, its 14th consecutive increase. As a result, the cost of borrowing in the UK will increase to its highest level since the 2008 financial crisis.

This has meant that those with a variable-rate mortgage have been paying more each month, and first-time homebuyers and people switching from fixed-rate mortgages have been paying more for new home loans.

Talking about the interest rates, the Bank of England’s Governor has revealed that the UK is “much nearer” to the top of the cycle of interest rates, telling MPs that there is no longer a clear upward path for interest rates during a Treasury Committee session.

However, there seems to be another interest rate rise on the horizon as the latest official data shows that wages in the UK have continued to surge at record rates.

Some economists think rates will rise to 5.5% this month as pressure on the Bank to control inflation remains.

When is the next interest rate announcement?

The Monetary Policy Committee announces any change in interest rates every six weeks and the next will be on Thursday, September 21.

The committee will share its summary and minutes, including the current interest rates.

Will interest rates go up?

Interest rates are expected to increase again. Find out more about why interest rates rise in our guide.

However, with the base rate perhaps reaching 5.75 per cent this year, several analysts think the cycle of rising interest rates may be coming to an end.

According to the Office for National Statistics, the Consumer Prices Index inflation rate was 7.9 per cent in June, down from 8.7 per cent in May and the lowest level since March 2022.

Since December 2021, the Bank of England has increased the base rate from 0.1 per cent to five per cent.