COLCHESTER Gazette readers have been left frustrated following another rise in interest rates.
The Bank of England has risen the interest rates for a sixth time in a row from 1.25 per cent to 1.75 per cent.
The decision makes it the largest increase for 27 years and comes in an attempt to control runaway inflation.
The last time interest rates were 1.75 per cent was during the global financial crisis in December 2008.
The bank also warned the UK is set to fall into its longest recession since the financial crisis and inflation will peak at more than 13 per cent as gas prices soar.
In Colchester, the news came as frustrating for many Gazette readers.
Darren Marter said: “I’m bummed out. The mortgage is coming to an end of its fixed rate this year. Going to have to jump on a far higher rate than what I'm paying now.”
Kerry Rogers echoed this sentiment, saying: “Luckily we’ve finished paying our mortgage but it’s terrible, especially for those just starting out.”
Daniel Sharples said: “It’s the overinflated cost of electricity, gas, diesel and petrol that are really pushing up the inflation rate, take these out of the equation and the actual increase would be massively reduced and I doubt there would be any need to increase the interest rate at all.”
Director of Citizens Advice in Essex Martin Lord said: “If it hadn’t been in the context of all the other things people have had to confront, it might have been something people would have had more confidence to deal with.
“People who are struggling, if they see their loan payments going up, it’s just another thing to stress over.”
Citizens Advice has revealed through a new interactive dashboard that crisis support continues to grow at record-breaking levels.
Martin added how they can help those who are struggling financially.
He said: “We try to help people maximise their income and rationalise their expenditure.
“If your income and expenditure are at the very least balanced, we can put a plan in place to tackle debt.
“People can help themselves through things like seeking support from energy companies, getting help from food banks, or looking into the Government’s household support fund which we are administering partly in Essex.”
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