Bank of England governor says the UK's reputation was damaged by Truss's mini-Budget
The Bank of England has raised interest rates by 0.5 per cent taking the base rate to 3.5 per cent in a bid to tackle soaring inflation.
The latest hike represents a slight cooling in rate increases, after the Bank’s MPC opted for a 0.75 percentage point rise last month – the highest single increase since 1989.
It was the ninth time in a row that officials raised rates as they try to tackle inflation, currently running at 10.7 per cent - down slightly from 11.1 in October but still at historically high levels.
Higher interest rates will bring fresh pain for mortgage holders on deals linked to the Bank’s base rate, while those with fixed rates set to expire soon will have to refinance at higher rates.
