BBC Radio 4's Money Box was broadcast on Saturday, 12 June, 2004, at 1204 BST.
The Bank of England has increased interest rates by a quarter of a percentage point for the second month in a row.
The move had been widely predicted following continued concern over the housing market and levels of consumer borrowing.
News of the rise to 4.5% will be disappointing to home owners, who have now seen four rises in eight months.
That means their mortgage payments could have increased by as much as 20% in that time.
However, rate rises are better news for savers. And savings rates have risen, though not always in line with the base rate.
But with inflation lower than it was a year ago, the real return on savings has increased strongly.
We spoke to Ray Boulger of mortgage brokers Charcol about the likely effect on home owners given that rates are expected to rise further over the next year.
And Anna Bowes, Investment Manager at independent financial adviser Chase de Vere, joined us to discuss savings, as one listener expressed his anger that his savings have not been benefiting in the way he feels they should.
Producer: Jennifer Clarke
Presenter: Paul Lewis
Reporter: Mike Johnson
Web Producer: Nathalie Knowles
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