UK interest rates have been raised for a 12th time in a row in a further attempt by the Bank of England to slow rising prices.

The increase to the Bank's base rate from 4.25% to 4.5% means rates are now at their highest level since the height of the global financial crisis in October 2008 when several banks collapsed, almost 15 years ago.

The rise is likely to heap further pressure on many households struggling with the cost of living.

It will mean higher mortgage payments for some homeowners, while people looking for loans will face higher borrowing costs. However, high interest rates can benefit savers.

Ian Mean, Business West Gloucestershire director, said: "This is bad news, particularly for mortgage payers, with the highest interest rates since 2008. And while the cost of living crisis - the worst in living memory - does not improve, there is nevertheless some better news for business.

The Bank of England has now said that the UK economy will not go into recession. It could be that inflation - now running at a record 10.1% - might well halve to 5% by the end of the year as energy prices come down.

"Today's rise in interest rates will mean further financial heartache for 1.4 million homeowners on variable mortgages as they will have seen their monthly payments increase by more than £7 000 a year on average since December 2021.

"Banks, in my view, need to do their best to hand back some of the profits from these interest rate rises to savers."