Thursday’s rise in rates had an immediate effect on the pound’s value, which began to fall against key currencies.

The decision is also set to impact consumers’ monthly outgoings, with experts estimating the rise from 0.25% to 0.5% will add around £18 a month or £216 a year to a £150,000 variable rate mortgage.

Abta was still evaluating the impact on travel, but financial experts believe the impact on discretionary spend – including travel – may be quite limited, as many more households now have fixed rate repayment mortgages, while younger people unable to afford home ownership are renting for much longer.

Bank of England figures show that 57% of mortgages are now fixed rate, compared to only 27% in 2004 and 39% in 2014.

In addition, the Bank of England has said that any further rate rises will be “at a gradual pace and to a limited extent”. The Bank’s signal that rates will rise slowly means there will be no speedy return to the levels seen in 2007, when rates peaked at 5.75%, or the 1990s, when they reached double figures.

The Bank’s monetary policy committee’s decision on Thursday reversed its 0.25% rate cut of August 2016, which was designed to help Britain’s economy in the aftermath of the Brexit vote.

The new rate rise aims to curb inflation by dampening demand.

One consolation for the travel industry is that savings rates will rise – benefiting those who put money away for their annual holiday – but any increases in savings rates by banks will be small and are generally not immediate.