Bank of England raises interest rates to 4.25 per cent after unexpected inflation hike

The Bank of England has hiked up interest rates after UK inflation unexpectedly jumped higher last month.

The move by policymakers on the bank’s Monetary Policy Committee is a bid to put a lid on soaring prices.

They voted seven to two to increase rates from 4 per cent to 4.25 per cent, but expect the economy to grow slightly in the second quarter of the year.

Inflation is set to come back down despite the surprise increase in Consumer Prices Index.

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