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Bank of England is set to hike rates to battle inflation. That means pain for borrowers
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FILE - A man walks past the Bank of England, at the financial district in London, on May 11, 2023. The Bank of England is poised to raise borrowing costs again on Thursday June 22, 2023, to combat stubbornly high inflation, which has failed to come down from its peak as quickly as expected. - photo by AP Photo/Frank Augstein, File
LONDON (AP) — The Bank of England is poised to raise borrowing costs again on Thursday to combat stubbornly high inflation, which has failed to come down from its peak as quickly as expected. Though the consensus among analysts is that the central bank will raise its main interest rate by a quarter-percentage point — hitting a new 15-year high of 4.75% — there are concerns, certainly among borrowers, that it may opt for a bigger half-point increase. That larger hike would be particularly painful for people with loans, especially the 1.4 million or so households in the U.K. that will have to refinance their mortgages over the rest of the year.