The Fed’s target benchmark interest rates currently stand between 5.25% and 5.5% – their highest level since 2001. The interest rate rise – the ninth consecutive hike since last summer – followed a similar move by the US Federal Reserve yesterday (see story below). At its last meeting, the Bank caught commentators on the hop with a larger-than-expected half-percentage point rate rise which took the Bank Rate to 5%. The move takes eurozone trading bloc interest rates to their highest level in 22 years as the ECB battles persistently high inflation. High interest rates, and in turn, high mortgage rates, seem to be hanging around for longer than many expected.”Mike Stimpson at wealth manager Saltus said: “Interest rate increases driving mortgage rates have already been affecting the population.

Source: Forbes September 14, 2023 13:13 UTC