Bank of England raises interest rates to 1.25%

Three members of the Bank of England’s monetary policy committee voted for a larger, 0.5-point rise. Photograph: Yui Mok/PA

The Bank of England has raised interest rates for a fifth time in succession to tackle an inflation rate that is heading towards 11% amid soaring household energy bills.

In a move widely expected by City economists, the Bank’s monetary policy committee (MPC) voted by a majority to increase its key base rate by 0.25 percentage points to 1.25% in response to living costs rising at the fastest annual rate for four decades.