to 5% on Thursday, twice the expected 25 bps rise and the 13th hike in a row, is likely to test that confidence, however, especially as consumers are already struggling with stubbornly high prices for food, fuel and essential services.
A run of data showing stickier-than-expected UK inflation has led markets to bet that BoE rates will stay higher and for longer. This has been reflected in swap markets. Of around 9 million outstanding residential mortgages, 800,000 are due to come off fixed-rate deals in the second half of 2023, data from trade industry group UK Finance shows. A further 1.6 million households will come off fixed rates in 2024.
There are signs cash-strapped Britons are turning to higher cost, unsecured credit to make ends meet, with 343.8 million credit card transactions recorded in March - 4.9% higher than in March 2022, UK Finance data showed.