The Bank of England has raised interest rates to 1.25 per cent from 1 per cent - the highest since January 2009.
The increase comes as the bank attempts to temper rising inflation and poor economic growth.
The Bank’s monetary policy committee made the decision to increase the base rate of interest for the fifth time in a row on Thursday afternoon, its highest point in 13 years.
This is the first time interest has been above 1 per cent since January 2009 and comes as the Federal Reserve raised interest by the highest margin since 1994 intensifying its drive to tame high inflation.
“In view of continuing signs of robust cost and price pressures, including the current tightness of the labour market, and the risk that those pressures become more persistent, the committee voted to increase Bank rate by 0.25 percentage points,” the committee said in a notice.
