Bank of England raises interest rates to 2.25%

0.5 percentage point increase

The Bank of England has raised interest rates to 2.25%, a smaller hike than economists expected.

The BoE was expected to produce a significant rate hike as UK inflation continues to rise, now closing in on 10%. This is the seventh consecutive increase and makes it the highest level of interest rates since 2008. The Monetary Policy Committee was heavily split in its decision, with five members voting to raise rates by 0.5 percentage points, three members preferred a more bullish hike of 0.75 percentage points, up to 2.5% interest rate, and just one member wanted to increase by 0.25 percentage points, to 2%.   However, it was unanimous in its decision to reduce the purchase UK g...