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. 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. Mitchell Barnes, founder and chief executive of Ryse 3D, which manufactures 3D parts for the defence and automotive sectors, said the "reality" of rising interest rates was to look at the cost of employees and people.

"You're going to see reduced employment, more automation, more robotics being put into facilities, just in order to increase efficiency and make that money go further." The Bank rate - and where it is expected to go in future - has a significant impact on the interest rates customers are offered on savings products. So, if you're saving up for something quite expensive, like a holiday, or very expensive, like a home, then a rate rise could be good news.