UK interest rates see biggest increase in 27 years

The Bank of England has announced the biggest interest rate hike in 27 years as it battles to curb soaring prices.

The rise to 1.75% from 1.25% comes as inflation continues to climb, driven by rising energy, fuel and food prices.

It's the sixth time in a row the Bank has raised borrowing costs to encourage people to both borrow and spend less.

Inflation, the rate at which prices rise, is already at 9.4% marking its highest level for 40 years and is expected to rise further.

Raising interest rates increases the cost of borrowing and is one way to try to control rising prices - or inflation - as it deters people from spending.

It can also encourages people to save more.