Interest rates are now at 2.25% – the highest rate that the UK has had since the financial crisis – after the Monetary Policy Committee (MPC) increased rates by 0.5 percentage points.

The rates had previously been speculated to rise by even more, but the Bank of England announced on Thursday that a majority vote of 5-4 had been reached to settle on the figure of 2.25%.

The decision to hike interest rates is a bid to keep inflation under control. It is the best tool that the Bank of England has to steer inflation – currently at 9.9% – back to its 2% target.