Interest rate to hit 2% next year, warns Andrew Sentance

A rise in interest rates could put more consumers in financial difficulty. A Bank of England policymaker is warning that interest rates may quadruple in the space of the next 12 months. Interest rates could quadruple to 2% within a year, according to Monetary Policy Committee (MPC) member Andrew Sentance. The hike would lead to a £100 a month rise in typical mortgage repayments for UK families. Mr Sentance has been in favour of upping the rate to 1% for the last few months to bridle soaring inflation levels, however the MPC has again voted to keep the rate at the historic low of 0.5%.