Interest rates hike

[Twins3007]

So, I am going to come across as very thick here, but can someone please explain to me in layman terms why putting up interest rates helps bring down inflation.

So, a lot of better off people may not have a mortgage so this will not affect them but will probably have savings so this will benefit them. Less well-off people will suffer as their mortgages will go up and less likely to have savings, so if their mortgage goes up (along with everything else) they will not be able to afford many things so the outcome of this is that small businesses i.e., hairdressers, beauticians, restaurants, pubs, luxuries that will be the first to go will collapse and people will lose their livelihoods.
surely this will then start to affect the housing market as people will not be able to afford to buy their own home, builders will stop building, construction workers, electricians, etc will lose their jobs.

I obviously know nothing about economics please someone explain to me

For now it's about matching the US to maintain the value of the £.

BoE have an easy to understand article about why and the reasoning www.bankofengland.co.uk/knowledgebank/why-are-interest-rates-in-the-uk-going-up

Thank you for your link, there is another chat on this subject as well that I will follow

By raising the base rate, it raises the cost of borrowing and that reduces demand for it from consumers, households and businesses, which slows the economy down. That’s the theory.

That's what I thought but today the £ decreased by almost 3% against the dollar after the rate hike.

Is that because the BoE played down the likelihood of many more future rate increases? I don't understand why they would do this if it weakens the currency and increases inflation.