Bank of England hikes interest rates for 11th time running after leap in inflation

The Bank’s Monetary Policy Committee (MPC) decided to increase interest rates to 4.25% from 4%

The Bank of England (John Walton/PA) (PA Wire)

The Bank of England increased interest rates for the 11th time in a row after an unexpected resurgence in UK inflation.

The Bank’s Monetary Policy Committee (MPC) decided to increase interest rates to 4.25% from 4%, just a day after the US Federal Reserve raised its key overnight interest rate by a quarter of a percentage point.

At its meeting yesterday, the MPC voted 7–2 in favour of increasing the rate by 0.25 percentage points. Two members wanted the Bank to maintain the previous rate of 4%.