Mortgage warning: Homeowners facing further pain as interest rates to rise for 13th time in a row

On Wednesday, official data showed that inflation was stuck at 8.7 per cent in May.

In turn, the Bank of England is more likely to announce a rise in its benchmark rate from 4.5 per cent.

Financial experts predict an increase to 4.75 per cent while some analysts suggest a rise to 5 per cent remains a possibility.

The Bank rate is already at its highest level for about 15 years, rising consistently since December 2021 in response to the soaring cost of living.

In theory, raising interest rates makes it more expensive to borrow money, which means people have less to spend - bringing down demand and therefore easing price rises.

The rise is expected to be announced at 12pm today following a meeting of the Bank's Monetary Policy Committee.

Prime Minister Rishi Sunak is set to make a speech after the decision to recommit to halving inflation by the end of the year and say he feels a "deep moral responsibility to make sure the money you earn holds its value".

But Labour's shadow chancellor Rachel Reeves has condemned the Government over the impact of rising rates on people with mortgages.

She said: "Instead of squabbling over peerages and parties and ruling out any action on mortgages, the Tories should be taking responsibility and acting now."

Yesterday, the Office for National Statistics confirmed that Consumer Prices Index inflation (CPI) remained unchanged.

The shock figure was driven by higher prices for flights and second-hand cars but supermarket food prices also continued to rise rapidly.

While food and energy prices are conventionally volatile and impacted by global commodities, Bank of England economists will be concerned that "core" and services inflation remains high.

Chancellor Jeremy Hunt appeared to back further interest rate rises saying it would not "hesitate in our resolve to support the Bank of England as it seeks to squeeze inflation out of our economy."