Bank of England raises interest rate to 4%, affecting jobs, savings and mortgages

The Bank of England has raised its base rate from 3.75% to 4% for the first time in over three years. BBC Business explains three ways the increase could affect people: businesses may face higher borrowing costs and limit hiring or wages, potentially accelerating automation; savers may earn better returns by moving money to competitive accounts, though landlord costs and rents could rise; and about 500,000 tracker mortgage holders will see monthly payments rise by around £31, while another 500,000 on standard variable rates may see about £14 more per month. Fixed-rate mortgage holders are unaffected until their current deal ends.