Man at a bakery looks into a box while holding a phone.Image source, Getty Images
ByKevin PeacheyCost of living correspondent
  • Published5 November 2026, 12:02 GMT
Updated 18 minutes ago

Interest rates have been raised for the first time in more than three years - and it could be good and bad news for you.

Here are three ways the increase to 4% from 3.75% could affect you.

1. Jobs and pay

Rate-setters at the Bank make changes to interest rates to fulfil their role of keeping price rises at a steady level.

Higher rates are meant to encourage people to spend less, reducing demand for goods and services and limiting price rises.