The Bank of England has today raised the base interest rate 0.75% to 3% to curb spiralling inflation, which hit 10.1% year-on-year in September. 

 Rising mortgage rates were expected to “weigh on household spending for sometime”, the monetary policy report stated. Although, it also said that the “sharp tightening in mortgage availability seen during late September is not assumed to persist over the forecast period”. It noted there had been “moderate falls in some mortgage rates in the days leading up to [today]”.