Bank:rates up

Interest Rates Up a Quarter Per Cent

This is the first change put into place by the new Monetary Policy Committee, which has been given authority by Chancellor Gordon Brown to decide interest rates free from political influence.

This latest move on interest rates had been widely expected in the City, in the face of a series of recent statistics which suggested rapidly growing inflationary pressures within the economy.

Halifax: more expensive mortgages

Mortgages going up

The UK's two biggest home-loan providers, the Halifax and Abbey National, immediately responded by announcing mortgage rates are to go up by 0.35%, higher than the base rate increase. They have over four million borrowers between them.

Ros Bew reports on the effects of the rise

The rises come into effect immediately for new borrowers, and on July 1st for existing customers. The increases come exactly a month after leading lenders increased mortgage rates by around 0.35% after the last rise.