Interest rates hit 5.75%

The rise had been predicted by economists after Bank governor Mervyn King said inflation was a concern. In addition, it emerged a fortnight ago that four of the nine members of the Bank's Monetary Policy Committee voted for a rise last month – when the rate stayed at 5.5%. The rise in interest rates from 5.5% to 5.75% would put an extra £16 a month on an average £100,000 repayment mortgage, but it could be good news for savers, who should receive more for their investments. Despite the pressure on the housing market, property investment portfolio managers Young Group says the London ...