The Bank of England has hiked UK interest rates to 4% - its tenth rise in a row as it battles against inflation and soaring prices.
The base rate was increased from 3.5% and remains at its highest level since 2008. But the Monetary Policy Committee (MPC) policymakers, who decide the bank rate, appeared to hint that borrowing costs may now be near their peak. The MPC said it would only raise rates further "if there were to be evidence of more persistent [inflationary] pressures" than already forecast.
But it didn't say it would respond "forcefully" to these pressures, as the committee had said in previous meetings. Markets expect interest rates to peak at 4.5% towards the end of this year - down from the 5.25% that had been forecast following the Mini-Budget. Banks and lenders change the interest rates on their savings and borrowing products in line with the base rate.
This means when the base rate goes up, borrowing money becomes more expensive. This is particularly bad for homeowners with a variable rate mortgage - but in some good news, savings rates have gone up. If you're a renter, you may find your landlord decides to increase your rent if their mortgage has risen as a result of the rate hike.