Majority of MPC rate-setters back hike of 0.5 percentage points despite fears UK is entering a long recession
- Analysis: Speed of UK rises will dent already weak economy
- Business live: Bank of England split over UK rate rise
The Bank of England has raised interest rates by 0.5 percentage points to 3.5% in an effort to combat double-digit inflation that has caused a widespread cost of living crisis.
Members of the central bank’s monetary policy committee (MPC) voted to increase the cost of borrowing after the consumer prices index (CPI) in November showed annual inflation of 10.7%.
