Interest rates set to rise to highest in 30 years as Bank of England batters households

File photo dated 29/09/22 of The Bank of England in central London as the bank has said it will further bolster its emergency bond-buying plan as it warned an ongoing rout in the gilts market poses a "material risk to UK financial stability. Issue date: Tuesday October 11, 2022. PA Photo. See PA story ECONOMY Bank. Photo credit should read: John Walton/PA Wire

THE Bank of England is today expected to clobber households with the biggest interest rate rise for 30 years.

The market expects the Bank to announce a 0.75 per cent increase to three per cent — the highest level since 2008.

The highest increase since 2008, 0.75%-3%, is expected to be announced by the Bank of England

Such a hike would be the biggest since Black Wednesday in 1992, when interest rates briefly rose from ten to 15 per cent as the Pound collapsed.

Bank governor Andrew Bailey has been criticised for not hiking rates faster to counter inflation.

But any rise is a worry for the 1.5million homes on tracker mortgages, whose payments will soar by an average £880 a year.

Last night the US central bank, the Federal Reserve, increased interest rates by 0.75 per cent.

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