Your Say: Sunderland reacts as interest rates rise to 3%
Written by Pilbak Claudia on 2nd December 2022
The Bank of England had raised rates even further from 2.25% to 3%, bringing it to the highest level since November 2008 marking also the highest single increase since 1989.
These high interest rates could have a great impact on the cost of living, affecting those with mortgages, credit card debt and loans, drastically changing people’s finances.
Spark took to the streets of Sunderland to ask how the interest rate rise is affecting people’s lives.
Sue, a 74-year-old pensioner from Sunderland, said: “Me and my husband are alright, not great but comfortable. The only impact on us is the utility bills, being elderly and not moving much out and about. We like to keep the house warm, and our heating, food and petrol bills are soaring.”
Peter, from Sunderland, said: “I benefit from it as the interest rates on savings are higher than ever I can remember, as I am mortgage free, I will benefit from it, not a great deal, but certainly will make some difference.
Chloe, a 22-year-old Sunderland University student, said: “The raise of interest rates mostly affects my family, with mortgage payments and pension. I feel people are worried about the cost of living going up and not being able to afford it.”
Kaitlin, 25, from Sunderland said: “It is concerning, especially in the cost-of-living context being so high, my family certainly feels overwhelmed and worried about being able to keep up with the mortgage payments.”
Alan, a 58-year-old IT worker from Sunderland, said: “This is pushing up the price of food, fuel, accommodation, and most things across the board, which again is rather worrying. I see it here at my work how people are struggling to keep up with the monthly bills.”
Kristina, a 37-year-old cleaner from Sunderland, said: “People will save even less, if they still have a job, as many struggle now with that as well. Coming into winter with less daylight and a lot more bad weather, with such an overwhelming mental and emotional distress, it worries me to think how people will get through this.”
The raise in interest rates has affected everyone in different ways and the cost of living is going to be a strong concern for the people of Sunderland and across the UK.