The Bank of England hikes interest rates to 4%

The Bank of England has raised the base rate for the 10th consecutive time. 

This is now the highest interest rate level since 2008, bringing the base rate to a 14 year high. 

A statement from the Bank of England said: "We expect inflation to fall quickly this year. We’ve raised our interest rate to four percent this month. We know that higher interest rates have a real impact on people’s lives. But by raising interest rates we can bring inflation down sooner, and make sure it stays low after that."

In response to the Bank of England increasing interest rates again today, founder and CEO of mycommunityfinance.co.uk, Tobias Gruber, said:

“Don't assume that because the Bank of England has hiked interest rates again, your savings rates will automatically go up, even though your savings provider is essentially borrowing your money. 

“Lenders have been prompt to pass on interest rate hikes to consumers with mortgages, but disappointingly for those looking to maximize their savings, many banks have only slightly increased the interest they offer to savers.

“The most well-known high-street banks are the least generous in terms of passing on interest rate increases, so if you're searching for a savings account, don't hesitate to explore options from lesser-known providers or consider joining a credit union - just make sure they're covered by the Financial Services Compensation Scheme, which protects up to £85,000 of your money”.

About Tobias Gruber

Tobias Gruber is the founder and CEO of My Community Finance. For the past 30 years, he's been a prominent leader in investment banking and asset management for some of the sector's most renowned banks, including Credit Suisse, SwissBank, JP Morgan and Morgan Stanley. 
 
Fast forward to 2018, Tobias launched My Community Finance to provide a platform for the financially excluded, helping people to get back on their feet with ethical and socially responsible lending. Within 36 months, My Community Finance has become accountable for 25% of borrowing within the credit union sector. 
 
Tobias has experienced first-hand how certain areas of the finance world are ripe for change and is a passionate advocate for using fintech to help people and solve society's economic problems. 

About My Community Finance

My Community Finance is on a mission to transform how its customers manage their money by giving them access to ethical alternatives through two of the U.K.'s biggest credit unions: My Community Bank and Castle Community Bank.

Credit unions give a lifeline to customers who struggle to access mainstream credit by introducing them to financial communities that don't prioritise profits and whose unique regulatory structure means they can offer fairer rates. 

Based in London and launched in 2018, My Community Finance is fully authorised and regulated by the Financial Conduct Authority and is a trading name of Amplifi Capital (U.K.) Limited, which has offered ethical and responsible financial products to near-prime consumers since 2015.