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The Bank of England has raised the interest rate by a quarter of a percentage point for only the second time in a decade.
Announced at the start of August, the increase sees rates at the highest level since March 2009, at 0.75%, a chance that has been brought on by expectations of a strengthening economy, solid employment levels, more consumer spending and potential wage rises.
The move will see an increase in the interest costs of those that are locked into residential mortgages on variable and tracker rates, but savers will benefit from an uplift in interest rates over the coming months.
For businesses, there is a mixed outlook. Suren Thiru, head of economics at the British Chambers of Commerce, said, "The decision to raise interest rates, while expected, looks ill-judged against a backdrop of a sluggish economy.
"While a quarter-point rise from 0.5% to 0.75% may have a limited long-term financial impact on most businesses, it risks undermining confidence at a time of significant political and economic uncertainty."
The Bank of England’s main priority in making this decision has been to keep the rate of inflation, otherwise known as the cost of living, under control.
UK economic outlook:
For more information on the changes, click here.