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The Bank of England's interest rate rise explained - including savings and mortgages

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The Bank of England has increased interest rates to 0.25% in the UK. The changes will affect everybody with a savings account and/or mortgage.

Members of the Monetary Policy Committee (MPC) voted eight to one to raise rates from the historic low of 0.1% on Thursday. It comes after pressure has been building on the Bank to bring the soaring cost of living under control, with official figures this week showing the Consumer Prices Index jumped to 5.1% - the highest level for more than a decade. READ MORE: Aldi shoppers in a frenzy over 49p bumper toilet roll packs In the minutes of the decision, the Bank warned that inflation could now peak at 6% in April, while it also downgraded growth outlook to 0.6% in the fourth quarter from a previous

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