Today, the Bank of England increased its base rate by 0.5 percentage points to 3.5% – the highest rate the UK has seen in 14 years.
It rose to 3.5% from 3%, marking the ninth consecutive increase.
This comes as inflation is increasing at the fastest rate seen in 40 years, sparking a cost of living crisis across the UK.
Analysts now expect rates to peak at 4.5% next year before falling back to 3%.
But what does this mean for dentistry? Iain Stevenson, head of dental at Wesleyan, shares his thoughts on what this means for dental professionals.
Impact on dentistry
‘This is now the eighth consecutive rate rise this year,’ he says.
‘Those most affected by this announcement will be people and businesses with debt, including mortgage-holders and mortgage seekers.
‘Those who have one of the 1.8 million fixed rate loans set to mature next year could be facing a significant rise in their repayments if they default to a variable rate once their current deal ends.
‘Meanwhile, new mortgage rates could climb higher. Although some lenders may have already priced in the likelihood of this increase, and any other still to come.
‘Those seeking the best deal for mortgages may benefit from speaking to a professional broker. They have a view over the whole market, and can advise on the best options for individual circumstances.
‘Savers may also be expecting today’s news to mean an increase in the rate of interest they get from their bank. Banks have, so far, been slow to pass on interest rate increases.
‘So this shouldn’t be counted on immediately. In the meantime, they should consider how they can make their money work harder, for example by investing through a stocks and shares ISA.’
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