The Bank of England (BoE) has hiked interest rates to 4.5 percent, making it the 12th consecutive increase now.
This time around the decision to put up rates did not have support from all in the room. Seven voted for the increase whilst two wanted to keep things held.
A prediction of higher inflation than previously anticipated is noted as the cause, though the Bank states that there would be no recession in the remainder of 2023.
There is concern over rising food prices, which would result in inflation figures holding at current levels in this year and the next.
The bank is now forecasting inflation to reach 5 percent by year-end, putting up the chances of Prime Minister Sunak's inflation halving target being missed.
Interest rates are now at their highest since the market crash back in 2008. It is feared that the state of the economy will start to affect even more than the current third of the population it is already heavily impacting.
For the twelfth time in a row savers can rejoice as putting money aside and earning interest continues to become more worthwhile. However, on the other side of the coin there are mortgage holders.
Banks and Building Societies have already been pricing in the anticipated rate rise by raising their product rates over the last couple of weeks. Those with fixed deals coming to an end, or on variable/discount/tracker mortgages can expect the rate rise to be passed on to them with an increase in the monthly payment.
A mortgage of £100,000 at 4.25 percent would repay £542 a month - at 4.5 percent the new monthly payment would be £556 a month, an increase of £14.