Bank of England raises interest rates to 0.25%
by Richard Partington Economics correspondent from on (#5T3RT)
Inflation spike prompts MPC to vote for increase despite fears for UK economy from surge in Omicron cases
The Bank of England has unexpectedly raised interest rates for the first time in three years amid growing concerns over inflation, despite the rapid spread of the coronavirus Omicron variant.
Threadneedle Street's monetary policy committee (MPC) voted by a majority of eight to one to raise rates from the historic low of 0.1% to 0.25%, judging that pressure on households from surging living costs outweighed the risks to the economy from the new variant.
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