The Bank of England raised interest rates on Thursday by half a percentage point to 3.5 per cent, the highest level in 14 years, and warned that further rate rises were likely.
In a vote showing a majority on the central bank’s Monetary Policy Committee for “forceful” action against inflation, six of the nine members backed the increase and one favoured a larger 0.75 percentage point rise.
The bank has now increased interest rates at each of the past nine meetings, the most aggressive set of hikes since 1989.
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