Bank of England hikes interest rates to 13-year high of 1.25%

The Bank of England has raised its interest base rate to the highest level since the start of 2009 as it hiked its inflation predictions for the autumn.

Experts have set the rate at 1.25 per cent, a rise from 1 per cent, which is also the fifth consecutive increase.

George Buckley, the chief UK economist at financial services company Nomura, has discussed the thinking behind the Bank's decision to increase rates and explained the overall impact of the decision.

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