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The Bank of England has raised interest rates to 4.75% from 4.5%. BBC News explains how this latest rate rise will affect your personal finances.
I'm a saver. Should I jump for joy?
It all depends on how much of the interest rate rise banks and building societies decide to pass on to savers.
In the past some banks and building societies have been accused of dragging their feet and not passing on the rate rise quickly enough.
In general, though, rate rises are good news for savers.
Pensioners and those buying an annuity - an income for life - may also be cheered. In the past they have had to make do with low rates of return.
But before savers start popping the champagne corks, they should remember that interest rates are still relatively low.
In addition, far too many investors keep their savings in accounts paying poor rates of interest, which actually lose them money once tax and inflation is factored in.
Financial experts are urging savers to be active and switch accounts to ensure they get the benefit of recent interest rate rises.
I have a big mortgage, is it time to hit the panic button?
The quarter percentage point rise alone is unlikely to push your finances over the edge.
Interest rates are still low by the standards of the past 20 years.
In addition, in recent years, more Britons have chosen mortgages where the interest rate is fixed for several years instead of variable rate deals, which are very susceptible to Bank of England base rates moves.
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As a result, the large numbers of people with a fixed-rate deal will be unaffected by the Bank's rate rise.
However, people with other types of mortgages - or whose fixed-rate period is coming to an end - are likely to face higher payments.
According to the Halifax, each quarter of a percentage point rise adds £15 to the monthly repayment on a £100,000 variable rate repayment mortgage - quite a substantial hit.
Is this the last rate rise? How much financial pain is in store for mortgage holders?
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No one can say for certain whether or not there are further rate rises on the way.
However, many economists expect that UK rates are now on a upward path.
The Bank of England's main objective in raising rates is the control of inflation.
There is a pattern emerging in the world economy of rates rising as countries try to curtail inflation, which has been stoked in part by high oil and energy prices.
I have several credit cards - all near their spending limit. Will the rate rise hit me?
Credit card rates are often high but are less sensitive to Bank of England base rate movements than mortgages.
The rate rise may not feed through to credit card borrowers at all, particularly as the market place is competitive.
However, as interest rates rise, lenders tend to get twitchy about whether borrowers can afford to repay debts in the future.
In the early 1990s, the banks were accused of making an economic recession and a house price crash far worse by pulling the rug from under borrowers.
Many people found their credit card debt was called in at short notice and, as a result, got into financial hot water.
I have taken out a loan secured against my property, so am I going to regret it?
Many homeowners - seeing the value of their property rocket in recent years - have been tempted to remortgage to capitalise on rising house prices.
In addition, some people have consolidated debts such as credit cards and personal loans into a loan which is secured against their homes.
If they are unable to keep up payments they could risk losing their homes.
Any interest rate rise will hit homeowners who have remortgaged with a double whammy - first on their main mortgage, then again on the second one.
What can I do to protect myself?
First, don't panic.
No major UK economists are predicting that a recession is around the corner.
In addition, even with the quarter point rise, interest rates are roughly half the average of the past 20 years.
But some debt experts hope that the interest rate rise will act as a wake-up call to UK borrowers to get their finances under control.
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