THE Bank of England raised its interest rates for the 12th consecutive time today to a 15-year high of 4.5 per cent, in a decision that will “do more harm than good.”

The hike — which is at the highest level since 2008 — will pile more pressure on borrowers.

TUC general secretary Paul Nowak said the decision will “make a bad situation worse,” adding: “The priority should be protecting living standards and boosting the economy to safeguard people’s jobs.

“The best way to do this is by giving working people decent pay rises that keep up with the cost of living.”

Positive Money co-executive director Fran Boait said the BoE was “failing to read the room,” adding: “Hundreds of thousands of households failed to meet rent or mortgage repayments last month because of higher interest rates.

“The only beneficiaries of rate rises are banks, who not only siphon off those higher interest payments from consumers but gain billions from the higher interest payments the bank itself pays them for the money they hold with it.

“Rate hikes are doing more harm than good; it’s time to put the brakes on and support families in dealing with rising costs, not heap further costs on them.”