The Bank of England is maintaining interest rates following 14 consecutive increases, with the current rate at 5.25%, the highest in 15 years.
The decision aims to combat inflation, which has eased from its peak but remains above the 2% target.
This affects homeowners, with mortgages seeing increased monthly payments. Fixed-rate deals are common, but rates have risen.
High interest rates also impact credit card and loan rates. Shoppers are advised to seek competitive deals.
Savings account rates, while increasing, struggle to keep up with inflation, eroding real savings value.
Inflation results from both global factors like supply chain issues and domestic factors such as rising wages.
The UK's rates are among the highest in the G7, and central banks globally have been raising rates due to inflation concerns.