Bank of England raises interest rates to 3.5% in ninth increase in a year

Majority of MPC rate-setters back hike of 0.5 percentage points despite fears UK is entering a long recession

• Analysis: UK borrowers face a serious reality check

Mortgage payers are braced for higher borrowing costs, after the Bank of England pushed up its base rate by 0.5 percentage points to 3.5% despite saying inflation has peaked and Britain is about to enter a prolonged recession".

The Bank hiked interest rates on Thursday for the ninth time in a year, to the highest level in 14 years, but told borrowers to prepare for fresh increases in the new year.