The Bank of England has hiked interest rates by 0.5 percentage points taking the base rate to 4%.
It’s the tenth time the rate has been upped by the central bank since December 2021 as it aims to bring inflation down to its 2% target.
The goal is that raising interest rates will slow economic activity, which in turn will reduce prices and inflation.
Higher interest rates make borrowing more expensive, as repayments for things such as credit card debt and mortgages cost more.
Central banks globally are implementing similar measures, with the US Federal Reserve having upped its rate on Wednesday and the European Central Bank on course to follow suit on Thursday afternoon.
Inflation in the UK stands at more than five times the Bank’s target at 10.5%.