The Bank of England has raised interest rates for a 13th consecutive time as it tries to stop prices rising so quickly. The Bank rate, set by the Monetary Policy Committee, has gone up to 5% from 4.5%.
The rise means further pain for some homeowners, however could benefit savers. The Bank of England have been consistently raising interest rates in an attempt to combat rising prices - known as inflation.
The European Central Bank recently raised its main interest rates in Europe by a quarter percentage point, to 3.25%. Other central banks around the world have also raised rates, as inflation across the globe continues to cause problems in a host of major economies
Savers are advised to shop around for better saving rates, with many paid very little or nothing in interest in many accounts. Major banks are under huge pressure from Mps to pass on rate rises. Although this would mean more return on your savings, interest rates are not keeping up with rising prices.
