UK households face £3bn hit if Bank goes ahead with 0.75-points rate rise

Hike in interest rates would be the biggest in 33 years and would heap renewed pressure on borrowers

The Bank of England is considering the biggest interest rate rise in 33 years to tackle soaring inflation, a move expected to cost millions of households more than 3bn in extra mortgage costs.

City investors expect Threadneedle Street to raise interest rates by at least 0.5 percentage points, or even 0.75 percentage points, on Thursday at the next meeting of its monetary policy committee (MPC).