Interest rates have been kept at historically low levels for years by the Bank of England. Monetary policy has been used to keep the engine of the UK economy from stalling while austerity has impacted significantly on demand. If the Bank of England wants to fight inflation it may now nudge interest rates up. The new policy will affect different parts of the UK in various ways.
In the lagging regions, a hike in interest rates may not be welcome. It could be too soon for struggling regional economies. It may widen regional disparities and undermine initiatives like the Northern Powerhouse. If Brexit talks go badly, the economic chill may be hard for people in these regions to cope with. The type of jobs created in these peripheral areas has not facilitated saving among the young.
The resilience of prosperous parts of the country should put them in an enviable position. Overheating tendencies may be dampened and many households will find that a gradual rise in interest rates is appropriate for them. Savers could be cheered and interest in tax-free saving accounts might revive.