Bank of England increases interest rate for first time in more than a decade

The 0.25 per cent increase was announced on Thursday morning and it was signalled that more interest rate hikes could be on the way.

The decision to increase the interest rate was taken by the bank's Monetary Policy Committee.

The increase is set to affect millions of people with variable rate mortgages.

Some experts predict the average mortgage will increase by approximately £15 per month as a direct result of the increase.

The decision signals the bank's intention to curtail inflation which has been fuelled by Brexit uncertainty.