The Bank of England has today increased the base rate from 0.5% to 0.75% in response to rising inflation.
The base rate, which affects the costs of mortgages and the amount of interest paid on savings, has now risen three times since December.
Here, Which? explain what the base rate rise means for your personal finances.
The Bank of England's Monetary Policy Committee (MPC) has voted by a majority of 8-1 to increase the base rate by 0.25 percentage points.
The MPC made the decision in response to CPI inflation rising to 5.5%, a figure well above the Bank's target of 2%. The Bank predicts that inflation could rise as high as 8% in the second quarter of the year.
The MPC meets eight times a year to set the base rate, and the results of the next meeting will be published on 5 May.
When the Bank of England lends money to commercial banks, the amount of interest they must pay back is determined by the base rate.
A higher base rate means lenders are charged more - and these higher costs are usually passed on to customers in the form of interest rate rises.
Theoretically, a higher base rate should mean mortgages get more expensive and that savings accounts pay more interest on your money, but that isn't always the case.
If you've got a fixed-rate deal, you won't be immediately affected by the base rate change and will instead continue to pay the same amount until the end of your fixed term.
When you come to remortgage, however, you might find that deals have become more expensive.
Repayments on discount mortgages won't go up automatically due to the base rate rise, but there's a good chance your lender will increase its SVR by some or all of the rise in the coming days or weeks.
Mortgage rates fell significantly in the second half of last year, as lenders battled to secure custom from borrowers with big deposits.
At one stage, more than 100 sub-1% mortgages were available, but in the last few months, these have disappeared amid growing rumours that rate rises were on the horizon.
It's unlikely that today's announcement will result in the cost of fixed-rate mortgages soaring, as lenders had already been increasing their prices in expectation of a base rate hike.
It's been a tough market for savers in the last few years, with rates on instant access and fixed-term accounts hitting rock bottom.
Unfortunately, there's no guarantee today's announcement will offer an immediate boost.
Today's increase will place further pressure on banks to offer better rates to savers, but don't be surprised if the biggest lenders are slow in passing on the benefits.