The Bank of England has announced another quarter point rise in interest rates.

Members of the monetary policy committee decided on Thursday to raise rates to 4.5 per cent.

For the first time in four years the Bank voted for back-to-back rate rises, following May's quarter point rise.

Party Response: Conservative

Oliver Letwin, shadow chancellor, said: "For reasons that have to do with politics rather than economics, the chancellor has engineered a pre-election spending spree. This is taking an unnecessary risk with the economy - and the Bank of England is quite properly responding by raising interest rates.

"We are now approaching levels of interest which may prove uncomfortable to many people who have large mortgages or other borrowings.

"Given that household debt is on the verge of breaching the £1 trillion barrier, the combination of higher interest rates and high levels of debt is becoming a serious issue."

Party Response: Liberal Democrat

Vince Cable, Lib Dem Treasury spokesman, said:"People want to know that their homes are secure in uncertain times.

"Today’s interest rate rise is going to cost an average first time buyer £250 extra a year on their mortgage. If interest rates continue to rise, or house prices start to fall, many could find themselves in difficulty.

"The Bank is caught between dealing with the weaknesses in the economy and curbing the house price boom.

"Gordon Brown must urgently address the failures that have allowed banks to lend irresponsibly and fuel unsustainable levels of debt."

Forum Response: Construction Products Association

Allan Wilén, economics director at the Construction Products Association, said: "The monetary policy committee’s fears over the continuing strength of consumer borrowing and house price inflation are understandable.

"However, high rates will not help the fragile recovery we are seeing in