Bank of England raises UK interest rates to 4.5%

Latest 0.25 point hike marks 12th rise in a row as Bank battles stubbornly high inflation

• Business live: rates hiked to 4.5% in battle against inflation
• Explainer: how will the rise affect you?
• Larry Elliott: what happens next?

The Bank of England has raised interest rates by a quarter of a point to 4.5% as it forecast inflation would stay higher for longer than previously expected and the economy would perform more strongly.

Its monetary policy committee (MPC) voted by a majority for a 12th successive increase in borrowing costs, continuing its most aggressive rate-hiking cycle since the 1980s as it tries to dampen double-digit UK inflation.