Bank of England raises interest rates to 4.25%
The Metro says The Bank of England has announced that interest rates have risen for the 11th time in the last two years after Wednesday’s surprise jump in inflation.
Policymakers on the Bank’s Monetary Policy Committee (MPC) voted seven-to-two to increase rates from 4% to 4.25%.
They said they now expect the economy to grow slightly in the second quarter of the year, marking a reversal of the 0.4% decline in the gross domestic product (GDP) that the Bank had anticipated last month.
Furthermore, inflation is set to come back down this year despite a surprise increase in Consumer Prices Index (CPI) inflation last month, to 10.4% from 10.1% in January, driven by surging food and drink prices.
The decision marks the 11th time in a row the Bank has hiked interest rates.