The Bank of England’s monetary policy committee (MPC) voted to raise the base rate of interest on Thursday.
Following the quarter per cent increase – the fifth since August last year – the base rate now stands at 5.75 per cent.
Among the groups affected will be mortgage borrowers, who will see an average of £16 added to the monthly repayments on a £100,000 mortgage.
According to the Bank of England, the decision to raise the interest rate was made because inflation is still running above a two per cent target.
The MPC is yet to release minutes of the meeting, but a spokesman indicated that there could well be more rate rises before the year is out.
MPC meetings to discuss the economy, inflation and the interest rate are held on the first Thursday of every month.
© Adfero Ltd