UK mortgage interest rates will rise four times this year to 4.75%, markets predict

Investors believe Bank of England is likely to act amid sustained rise in inflation from Iran war

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The Bank of England will raise the cost of borrowing four times this year, pushing UK interest rates from 3.75% to 4.75% amid the conflict in the Middle East, according to financial market speculators.

In a blow to mortgage payers, international investors are betting that the UK is vulnerable to a sustained rise in inflation after the US-Israel attack on Iran.