What does the interest rate rise mean?

Borrowers to be hit while savers benefit - but is it a good idea?

The Bank of England based on Threadneedle Street is set to raise rates today
The BoE’s stress test is designed to ensure UK banks have what it takes to weather financial storms
(Image credit: Adrian Dennis/AFP/Getty Images)

The Bank of England has decided to raise interest rates for the first time in more than a decade today.

In a bid to soothe the economy immediately after last June’s Brexit vote, the Bank cut the base rate to a historic low of 0.25%. Before then, it had stood at 0.5% since 2009 in the wake of the financial crisis.

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