Bank of England raises interest rates to 4%, the first increase for more than three years

The Bank of England has raised interest rates from 3.75% to 4% for the first time in three years, signaling further increases ahead to tackle inflation driven by global tensions. With eight of the nine monetary policy committee members supporting the move, the central bank is responding to economic pressures amid a cost-of-living crisis. The decision follows warnings that inflationary pressures remain elevated, particularly due to geopolitical disruptions. Critics may question whether the timing and scale of the hike will ease financial strain for households already facing rising living costs.

Base rate increases from 3.75% and Bank governor signals another rise in near future to combat rising inflationAnalysis: Interest rate rise in midst of cost of living crisis will leave many incredulousThe Bank of England has raised interest rates for the first time in three years and warned of another increase to combat inflationary pressure unleashed by the Iran war.Eight members of the Bank’s monetary policy committee (MPC) voted for the rise, which takes the base rate from 3.75% to 4%. The ninth member, Catherine Mann, preferred a more dramatic half-point increase. Continue reading...