UK interest rates are expected to rise to a five-year high of 5% after the Bank of England's latest meeting.
The Bank of England has increased UK interest rates to a five-year high of 5% because of inflation concerns.
The predicted rise from 4.75% would be seen as a bid to cool inflation.
Its one quarter of a percentage point rise was widely expected by analysts.
UK inflation is currently running at 2.4% - above the government target of 2% - with bigger utility bills keeping the rate high.
The move is a bid to cool inflation, which led by higher utility bills, is currently running at 2.4%, above the government's 2% target.
A rise in rates would be bad news for homeowners and borrowers trying to pay off mortgages, credit cards and loans because it increases their repayments.
While the rise will be bad news for some mortgage-holders and borrowers, who will see their monthly repayments rise, it will be welcomed by savers.
The Bank is due to announce its rate decision at 1200 GMT.
Balancing act
Balancing act
The Bank has the difficult task of weighing up the effects of a possible slowdown in consumer spending caused by higher interest rates and people finding it harder to repay their debts, against its remit of reining in inflation.
The Bank has the difficult task of weighing up the effects of a possible slowdown in consumer spending caused by higher interest rates and people finding it harder to repay their debts, against its remit of reining in inflation.
There are increasing signs that consumer debt levels are becoming overstretched, with the latest set of government figures showing a record number of people in England and Wales became insolvent between July and September.
There are increasing signs that consumer debt levels are becoming overstretched, with the latest government figures showing a record number of people in England and Wales became insolvent between July and September.
While UK growth has been healthy, a slowdown in the international economy will sap some of its strength Steve Radley, EEF
Despite this worrying trend, consumer spending has held up, while high energy prices have kept inflation above target, economic growth has continued and house prices have remained strong.
However, as most recent economic news has been surprisingly strong, the majority of commentators believe that the Bank's nine-member Monetary Policy Committee (MPC) will back an increase in rates.
A majority of analysts expect the Bank's rate-setting Monetary Policy Committee to increase rates again in the New Year.
High energy prices have kept inflation above target, while economic growth has continued and house prices have remained strong.
Howard Archer, economist at Global Insight said recent economic data showed that there was "strong pressure for an interest rate hike".
He pointed to recent surveys showing that manufacturers and retailers were looking to pass on their higher costs to consumers by raising prices. Mr Archer added that positive data from the British Retail Consortium on Wednesday has also helped ease some concerns about a possible slowdown in consumer spending.
'Tough call'
However, manufacturers have urged the Bank to hold back from raising rates.
While manufacturers' group the EEF has admitted that the MPC's latest decision is the "tightest call for some time" it believes that, looking forward, the weight of evidence remains against a rate rise.
"While UK growth has been healthy, a slowdown in the international economy will sap some of its strength," said EEF chief economist Steve Radley.
"An expanding labour force also means that the economy can continue to grow at a healthy pace without generating inflation."
Last month, Bank governor Mervyn King insisted at a House of Lords Committee meeting that a November rise in UK rates was not a "done deal".
His comments came after minutes showed that two members of the MPC had voted for higher interest rates at the committee's last meeting.
Mr King told the committee that there were "plenty of uncertainties" over inflation, including the possibility of an economic slowdown in the US as well as UK consumers reducing their spending.
