Laura Suter, head of personal finance at AJ Bell, explained: “With the leap in inflation in May, better-than-expected UK growth figures and some pretty bullish comments from a number of the rate-setting committee, an interest rate rise feels inevitable.
“What’s more, we’re odds-on to see the biggest increase in interest rates since 1995 as it’s widely expected that the rate setters will hike rates by 0.5 percentage points.
“Such a move would take rates to 1.75 percent, and back to levels we’ve not seen since 2008.
“The environment is very different now, with rates in 2008 being slashed following the market crash, whereas now they are being hiked to try to stem an inflation boom.
“The move by the bank will pile more misery on the 1.9 million people with variable rate mortgages as they battle the rising cost of living.
“Likewise, anyone in debt will see their costs rise.”