The Bank of England raises interest rates for the fourteenth consecutive time as it warns that the cost of borrowing will remain high.
Its rate influences the cost of borrowing, which means the increase can lead to higher payments for homeowners, and people with credit cards or other loans.
The Bank has warned that this will likely remain elevated for longer than markets previously anticipated.
It says that while it appreciates that the hike will make things ‘difficult’ for many, the move was necessary to bring inflation down.
While the overall target is still 2 per cent, the government has pledged that inflation will be 5 per cent or below by the end of the year.
Inflation in the UK hit a 41-year high of 11.1 per cent in 2022 and has fallen more slowly than elsewhere, standing at 7.9 per cent in June, the highest of any major economy.
