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Watch: How will higher interest rates impact US consumers?
The BBC's Samira Hussain looks at the factors considered in the increase by the Federal Reserve and what it could mean for the US economy.
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The BBC's Samira Hussain looks at the factors considered in the increase by the Federal Reserve and what it could mean for the US economy.
The interest rate set by the Bank of England affects mortgage, loan and savings rates for millions.
The decision was split 7-2, with board members Toichiro Asada and Ayano Sato dissenting from the hike.
Rates were hiked in a unanimous decision despite fierce opposition from President Donald Trump, who had called for a cut.
Central banks around the world have hiked rates as high energy prices are pushing up inflation.
Rates are held for the sixth time in a row but the Bank of England says high energy prices make a future rise more likely.