03 November 2006
Big News!
The Bank of England has increased UK interest rates to a five-year high of 5% because of inflation concerns.
Its one quarter of a percentage point rise was widely expected by analysts.
The move is a bid to cool inflation, which led by higher utility bills, is currently running at 2.4%, above the government's 2% target.
While the rise will be bad news for some mortgage-holders and borrowers, who will see their monthly repayments rise, it will be welcomed by savers.
