rate rise
Three ways the interest rate rise could affect you
Interest rates have been raised for the first time in more than three years - and it could be good and bad news for you. Here are three ways the increase to 4% from 3.75% could affect you. Rate-setters at the Bank make changes to interest rates to fulfil their role of keeping price rises at a steady level. Higher rates are meant to encourage people to spend less, reducing demand for goods and services and limiting price rises. This impacts businesses in two ways - less money to spend among their customers may mean they sell less, but also the cost of borrowing to invest as a company goes up.