The Bank of England has raised interest rates by a quarter of percentage point -- to six per cent.

The decision, intended to keep the lid on inflation, had been widely expected.

It's the fourth time in six months that rates have been increased -- they now stand at their highest level in more than a year. Home owners are now facing the prospect of a hike in mortgage payments, but major lenders have said they're not making any immediate decisions to lift their mortgage rates - although they're expected to.

From the newsroom of the BBC World Service