Bank of England raises interest rate to 3%: How will it affect your pocket?

As the Bank of England announces its biggest interest rate jump in 33 years, many Britons will be asking the same thing - how will this hit my pocket?

The pound has yet again been sent spiraling by the news the central bank was raising the base rate by 0.75 percentage points to 3 per cent.

Interest rates are now at the peak they reached in 2008, with the bank warning of the longest period of recession since reliable records began.

This video explains what it all means.

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