The Bank of England raised interest rates at the beginning on this month – how will this affect your finances?
The Bank of England (BoE) has increased the base rate to 0.5%. This is a 0.25% increase and is the first time the rate has gone up since July 2007.
Banks are not obliged to follow Bank of England interest rate decisions, but they can influence the cost of borrowing, or how much interest you earn on savings so although this recent change is small, it could have an immediate impact on your household finances.
While the decision brings higher costs for those with mortgages and other borrowings, it is positive news for savers, pensioners and some investors. We have looked at the impacts in further detail. Read more