The Bank of England is likely to raise interest rates for the 14th time in a row as it tries to slow down inflation.

The majority of experts expect the Bank to raise its base rate later on Thursday, from the current 5% to 5.25%.

Mortgage and loan interest rates might go up, but more individuals might start saving as a result.

The pace of price increase in the United Kingdom is much above average, putting strain on families’ budgets.

Interest rates were last at 5.25 percent in April 2008, more than a decade ago. The jump from 4.5% to 5% in July was dramatic, but a climb to 5.25% would be less so and would reflect recent indicators that price increases have slowed.

The Bank of England’s target inflation rate is 2%, therefore the 7.9% drop in June was significantly larger than anticipated.

Policymakers may not have to raise interest rates as much as initially anticipated, according to Pantheon Macroeconomics.

The Bank hopes that by increasing the cost of borrowing, consumers will reduce their spending, resulting in lower household consumption and, ultimately, a slowing of price inflation.

The economy could suffer if interest rates are raised too quickly, but if they aren’t raised fast enough, inflation could spike even higher.

What happens to you when interest rates go up
The Institute of Economic Affairs (IEA), a free market think tank, recently argued that the Bank should hold off on any interest rate hikes until the effects of the previous hikes have fully taken hold.

Reducing inflation will be a delayed effect of recent rate hikes and declining global commodity prices.