Bank of England Governor Acknowledges Painful Interest Rate Hike.

The Bank of England has raised interest rates to 5% from 4.5%, the highest level in 15 years, in a shock move to slow soaring prices. The move will lead to higher repayments for people with loans and many mortgage holders, but it should benefit savers if the rise is passed on. Bank of England governor Andrew Bailey said that if the Bank did not raise rates now, "it could be worse later". The dramatic move comes as the Bank tries to show it is in control of inflation, the annual rate at which prices go up, which was much higher than expected in May and far above levels seen in other countries.