The Bank of England should hike interest rates in the second half of 2010 and lift borrowing costs to 3.5% by the end of 2011 to control rising inflation, an economic report says today.
Lenders have increased rates on small loans by two-and-a-half fold since the credit crunch took hold despite interest rates dropping to their lowest-ever level in that time, research by MoneySavingExpert.com reveals.
Skipton Building Society is facing a legal challenge and growing anger over its decision to hike its standard mortgage rate by a whopping 1.45 percentage points next month.
18 February 2010
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