According to the BBC.
The Bank of England has said that interest rates could be up on the rise again after evaluating the value of the Pound, as It has plummeted following the decisions of the government to cut taxes and borrow more.
This could have a big impact on the cost of living and people’s finances.
How are interest rates rising?
On the 22 of September, the Bank of England decided to rise the rates by 0.5 percentage to 2.25%. the highest it has been since for 14 years.
It said it will “not hesitate” to hike interest rates further after the pound fell to a record low against the US dollar.
It is suggested that rates could reach up to 6% next year. However that is dependent on the price investors are willing to pay according to data provided by Bloomberg.
The Bank’s monetary policy committee meets every month to decide interest rate policy.
It had been speculated that the Bank would convene an emergency meeting to address the crisis, but the Bank confirmed that it would wait until the next scheduled meeting on 3 November.
Despite a target to keep inflation at 2%, the Bank is under pressure to raise rates because prices are rising five times faster than its target.
In a statement, the Bank confirmed it would wait until 3 November before calling an emergency meeting to deal with the crisis. There had been speculation that the Bank would call an emergency meeting in response to the crisis.
Inflation is currently four times higher than the Bank’s target of 2%, which means it has to raise rates.