Interest rates: Bank of England governor warns rate rise hard for many

Rates have not been at 5% since 2008, but the UK economy, and in particular the mortgage market, is very different now. The Bank in its deliberations repeatedly referred to the fact that the “full impact” of the rate rise will not be felt “for some time” because of the prevalence of fixed-rate mortgages. There is a risk therefore that rates are having to go higher than otherwise.