The Bank of England's Monetary Policy Committee (MPC) decided to increase rates by a quarter of a percent to 4.75% at its monthly meeting today.

It acted to keep inflation in check, which rose to 2.5% in June - above the Government's 2% target. There are concerns that higher electricity and gas bills could force prices even further, the BBC reported.

Experts had been unsure whether the MPC would raise rates this month or wait until a later date.