This decision, which in light of the latest Covid data, has caught many off guard who thought the Bank would hold off until the New Year.
Undoubtedly this is a clear shot across the bows that shows that despite this, the Bank is prepared to get tough with inflation, and breaching the 5% level was always going to be the catalyst for a rise.
The reality is that this increase has already been priced in so will have little effect on mortgage products available now.
The real question is whether this is the start of a trend across the next 12 months and just how tough the Bank is prepared to get.
I expect to see an increased clamour for borrowers to fix in where they can, with many worried having not experienced an increasing rate environment before.