As expected, the Bank of England's Monetary Policy Committee (MPC) decided to make the increase, the fifth since August last year.

The British Retail Consortium (BRC) said the rise could be "an increase too far".

Director General Kevin Hawkins said:

"The effects of the recent, quick-fire series of rate rises are now beginning to be felt. It's clear there is more impact which has yet to feed through to sales and consumer confidence."

Meanwhile, the British Chambers of Commerce (BCC) said it was concerned about the "increasingly aggressive policy stance" taken by the MPC and its effects on business.