The four hikes in interest rates since last August have already added around £64 to the £100,000 home loan, fuelling concerns that more families could be tipped over the edge financially.

Citizens Advice said this week that its network of bureaux had already seen a surge in people seeking help over mortgage arrears. Some economists have warned that rates could rise again later this year, to peak at 6%.

Businesses and manufacturers will also feel the pinch from the MPC's decision.

David Kern, economic adviser at the British Chambers of Commerce, warned relentless rate rises could harm Britain's businesses.

He said: "We are very concerned over the long-term effects on British business of the increasingly aggressive policy stance that appears to be emerging.

"British business has shown resilience so far in the face of higher interest rates, but the pain is set to increase rapidly from now onwards."

Manufacturing organisation EEF also raised concerns over the impact on its members, saying the rise was "a step too far" and risked slowing the economy unnecessarily.

The MPC has been upping rates to keep a lid on inflation and bring it back to the Government's 2% target after a peak earlier this year that saw the Consumer Prices Index hit its highest level since the Bank took charge of setting rates 10 years ago.

But the rise in the cost of living is showing signs of slowing down, with CPI - used as the official measure of inflation - dropping back to 2.5% in May.

Recent data also suggests that the spate of rate rises is seeing consumers rein in their spending and putting pressure on firms to control pay and price increases.

Recent figures from the CBI showed that retail sales in June grew at a slower than expected rate for the second month in a row and high street stores have been reporting a drop off in trading.

Housing data from the Halifax earlier this week also signalled a marginal decline in property prices, with the 0.4% increase during June marking the second month in a row that prices had risen by less than 0.5%.

Homeowners in some parts of the country also saw falls in the value of property, notably Wales, where prices dropped by 2.8% last month.

But Malcolm Barr, economist at JP Morgan, said it was unclear if the rise to 5.75% was the last that borrowers will see this year.

"In increasing the rate in July rather than August on the back of a move in May, the MPC has stepped up the pace of moving up interest rates," he said.

"It remains to be seen if it's a one-off adjustment or reflective of an MPC that feels it has more to do.

"My suspicion is that the latter is true and as a result we are likely to see rates move up to 6% in the next few months."