Interest rates hit new 13yr-high

Interest rates have been raised from 0.75% to 1% – their highest level for 13 years.

The Bank of England hopes the move will slow the rate of inflation.

Experts warn that inflation could be over 10% by the end of the year, which has not been seen in the UK since 1982. Interest rates are expected to reach 1.25% this year.

The number of people struggling to pay their debts is expected to rocket as the cost-of-living crisis hits.

Debt advisers urge anyone struggling with their repayments to review how much they can afford to shell out each month and come to fresh arrangements.

Prices are currently rising at the fastest rate for 30 years, creating more strain on people’s finances.