The Bank of England has raised interest rates to 0.5% from 0.25%.
Members of the nine-strong Monetary Policy Committee (MPC) increased rates from 0.25% to 0.5% as the Bank’s quarterly set of forecasts are likely to show eye-watering inflation this spring.
It marks the Bank’s first back-to-back increase since June 2004, coming after it lifted rates from 0.1% to 0.25% in December to try to rein in rampant inflation.
