So it is not surprising that with inflation now hovering around 2.5%, the Bank of England has decided to make it initial step of increasing by 0.25%.  The equates to around £16 per month per £100,000, but will it stop there?

Interest rates have been rising in many countries around the world as banks try to curb inflationary expectations as economic growth accelerates.

In the UK, although economic growth has been running ahead of the Chancellor's forecast for some months, it recently slowed to a year-on-year rate of 2.6%

Additionally, house prices are continuing to rise strongly in most parts of the country, with prices increasing at an annual rate of more than 8%, according to the latest survey from the Halifax.

The Bank has been concerned that higher house prices encourage people to borrow and spend more, thus boosting inflation.