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The Bank of England has kept interest rates on hold in its first meeting since last month's decision to raise rates for the first time in 10 years. Members of the Monetary Policy Committee (MPC) voted unanimously to keep interest rates at 0.5%. At its November meeting the MPC raised rates from the record low of 0.25%, cheap ugg boots sale ukciting record-low unemployment, rising inflation and stronger global growth. It also indicated there would be two more rises over the next three years. In the minutes from its latest meeting, the Bank said "modest" increases in interest rates would be needed over the next few years, but repeated previous promises that those rises would be "gradual and to a limited extent". Higher interest rates have a big impact on the economy. Of the 8.1 million households with a mortgage, 3.7 million - or 46% - are on either a standard variable rate or a tracker rate - which usually move in line with the official bank rate. A move higher can also give savers a lift as High Street banks generally have to raise their rates of interest.

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