The Bank of England's monetary policy committee has raised interest rates by a quarter point to four per cent.

The rise, which was widely expected, will add around £15 a month to the repayment costs of a £100,000 mortgage.

Explaining its decision to put up rates, the bank said consumer spending was still strong.

“The world economic recovery has become more broadly based. In the UK, household spending and borrowing have been resilient and the housing market remains strong," it said.