Watford residents have voiced fears about rising poverty and homelessness after the interest rate was increased by the Bank of England.

Last week’s decision to raise the cost of borrowing by 0.75% was accompanied by warnings of a two-year recession and rising unemployment.

Mortgages and rents will now soar just as the cost-of-living crisis bites – a cocktail 58-year-old Joseph from Watford branded “disgusting”.

"You'd think they would try to bring the prices of things down instead of putting them up," he said. "The rich will get richer and the poor will get poorer."

READ MORE:

Mark, 50, who volunteers at the Elim Church in St Albans Road, added: “The Watford job centre are putting more pressure on me to find paid work.

"If I don't find a full-time job then I will probably be chucked out of my accommodation.

"It is making it more difficult to pay my bills."

The BoE said it needed to raise the rate to tackle rocketing inflation, but a knock-on effect is people already struggling having even less money to spend in shops.

Shoaib Arbi, 32, who works in a town centre mobile phone store, said: "We can't afford a lot of things so it has affected our daily lifestyle.

"People don't have money to buy some necessary things, so they don't buy luxury things.

"It affects the business because people don't spend money."

Watford Observer: Mark is worried that the cost of living crisis could lead to him losing his accomodation.Mark is worried that the cost of living crisis could lead to him losing his accomodation. (Image: Pearce Bates)

Brian, a pensioner with a daughter and grandchildren in Watford, said: "I've buried my head in the sand.

"I've got family in Watford and it's just about looking after them.”

Watford Observer: Shoaib Arbi explained the effect of the crisis on himself and the phone store.Shoaib Arbi explained the effect of the crisis on himself and the phone store. (Image: Pearce Bates)

Father-of-three Saeed, who works in Watford’s Moss Bros, said he has noticed a drop in footfall. However, he said he personally has not been hit too badly by rising prices.

"The only thing that has really affected me is fuel prices to get to work,” he said.

"The rest of it – food, shopping, stuff like that – has gone up a little bit, but I haven't felt it how the media has shown it."

Watford Observer: Some locals hadn't noticed many effects of the cost of living crisis.Some locals hadn't noticed many effects of the cost of living crisis. (Image: Pearce Bates)

Have you got a story for us? You can contact us here.

Follow us on Facebook, Twitter and Instagram to keep up with all the latest news.

To receive breaking news alerts or newsletters sign up here.

Check out our Watford crime and court Facebook page here.