Bank of England raises interest rates to 0.75% as inflation soars

Threadneedle Street reacts to prospect of Ukraine war pushing UK inflation peak to 10%

The Bank of England has responded to the likelihood that the war in Ukraine will push inflation to around 10% this year by raising interest rates back to the pre-pandemic level of 0.75%.

Threadneedle Street's monetary policy committee (MPC) voted 8-1 to increase borrowing costs by 0.25 percentage points - the first time the Bank has raised rates at three successive meetings in more than two decades.