Increase comes despite traders betting that interest rates will rise less than expected
NatWest is to increase its mortgage rates despite hopes of falls after better-than-expected inflation data.
The bank, which is the parent of under-fire private lender Coutts, said it will raise a selection of fixed rate deals by up to 0.3 percentage points from Thursday.
The increases include two-year and five-year deals for 90pc loan-to-value mortgages. Its rates will also increase by up to 0.4 percentage points on selected 95pc loan-to-value five-year deals.
Price hikes come despite a sharp fall in interest rate expectations after a surprise drop in inflation.