The Bank of England Monetary Policy Committee during its August meeting yesterday voted to increase the standard base rate from 0.5% to the new level of 0.75%. This increase was expected by many close to the housing market since the May meeting this year resulted in a vote to keep interest rates at the same level at that time which was 0.5%. This increase in the base rate equals the rate last seen in the year 2009.

Interest rates will now be higher for those seeking original loans on property purchases as well as those seeking remortgage. The MPC meeting yesterday saw the base rate increase 0.25% to the elevated level of 0.75%. The reason for the increase in base rate is being pointed to the economic outlook which now exists for the coming months. That outlook sees growth taking place in both the consumer sector as well as the business sector.

This is welcome news for savers who are looking for an improvement in the amount of interest savings accounts are accruing each month. The news is quite frowned upon for those looking to purchase property soon or remortgage their current property. The increase in base rate is now sitting at the level last seen in March of 2009.

Mark Carney, the governor of the Bank of England mentioned there will likely be further increases in the base rate, but they would be gradual.

Carney commented on the current economic climate, saying:  "There are a variety of scenarios that can happen with Brexit … but in many of those scenarios interest rates should be at least at these levels and so this decision is consistent with that.”

Economic growth in the first quarter was 0.2%. This growth doubled in the second quarter to 0.4%. This level is expected to continue through the end of the year.