The government has been encouraging people to save - higher rates make saving more attractive. Businesses - Higher rates increase their costs, which can make them less competitive. It also costs more to borrow money and to invest. Some companies argue that high interest rates keep the pound strong, which makes it harder for them to export. Pensioners - Many get a regular income from annuities, but this can depend greatly on interest rate levels.
Higher rates can mean higher returns.
Although they have enjoyed low rates for some time, the fairly rapid rise means the average interest repayments on a 60,000 loan have gone up 50 a month since last August. The BBC is not responsible for the content of external internet sites Links to other Business stories are at the foot of the page.