The Bank of England raised interest rates by a quarter of a percent, to 5%, today.
Needless to say this will negatively impact mortgages and credit card debts.
Interest rates are now at levels not seen since August 2001.
The move does not come as a surprise. However, it will not be welcomed by many mortgage and credit card holders who are already heavily in debt.
It will be interesting to see if banks and building societies, who will most assuredly raise borrowing costs, also pass on the full rate increase to their savers.