UK in recession, says Bank of England as it raises interest rates to 2.25%

In a three-way split decision, MPC signals inflation risks outweigh short-term threat of recession

Britain's economy is now in recession, the Bank of England has said, as it raised interest rates to tackle the worst bout of inflation for 40 years.

A majority of the Bank's nine-member monetary policy committee (MPC) voted to increase the key base rate by 0.5 percentage points to 2.25% - its highest level since 2008 - judging that the risks of inflationary pressures becoming entrenched outweighed the short-term dangers to the economy.