Bank of England raises interest rates to 1.25%

Bank warns of inflation rising to 11% after split vote to lift rate, for fifth time in a row, by 0.25 points

The Bank of England has raised interest rates for a fifth time in succession to tackle an inflation rate that is heading towards 11% amid soaring household energy bills.

In a move widely expected by City economists, the Bank's monetary policy committee (MPC) voted by a majority to increase its key base rate by 0.25 percentage points to 1.25% in response to living costs rising at the fastest annual rate for four decades.