Three ways the interest rate rise could affect you

Rate-setters at the Bank make changes to interest rates to fulfil their role of keeping price rises at a steady level.

Higher rates are meant to encourage people to spend less, reducing demand for goods and services and limiting price rises.

This impacts businesses in two ways - less money to spend among their customers may mean they sell less, but also the cost of borrowing to invest as a company goes up.

Many businesses, particularly small ones, have variable rate loans which are influenced by the Bank rate.

Firms say higher rates limit their ability to offer new jobs and wage rises.