The Bank of England has pushed interest rates higher as it tries to put a lid on soaring prices after UK inflation unexpectedly jumped higher last month.
Policymakers on the Bank’s Monetary Policy Committee (MPC) voted seven to two to increase rates from 4% to 4.25%, but said they expect the economy to grow slightly in the second quarter of the year, marking a reversal of the 0.4% decline in gross domestic product (GDP) the Bank had anticipated last month.
Inflation is set to come back down this year despite a surprise increase in Consumer Prices Index (CPI) inflation last month, to 10.4% from 10.1% in January, driven by surging food and drink prices.
