And there goes the global economy.

Britain faces longest recession in a CENTURY: Bank of England delivers grim forecast for the economy as it raises interest rates by 0.75% to 3% – the biggest increase since the 1980s – sending the cost of mortgages soaring by thousands.

During the pandemic house buying boom in 2020 and 2021, interest rates reached record lows with some deals priced at below 1 per cent – but now the cheapest fixed rate mortgage deals are now charging more than 5 per cent.

The average borrower coming off a two-year fix will see their rate rise from 2.43 per cent in November 2020 to 6.47 per cent.

You can safely expect the Fed and the European Central Bank, among others, to swiftly follow suit. And while 3 percent doesn’t sound like much, it’s enough to detonate the ability of the highly-leveraged to service their debts.

Buckle up. This is going to be a very wild ride. Because the rise in interest rates isn’t going to end here.