Bank raises interest rates to 4.75%

The Bank of England today delivered a blow to homeowners as it raised interest rates for the first time in two years in a pre-emptive strike against inflation.

In a precautionary move after inflation went up sharply in June, the Bank’s monetary policy committee (MPC) lifted borrowing costs by a quarter of a percentage point to 4.75%.

“With inflation likely to remain above the target for some while, the committee judged that an increase of 0.25 percentage points … was necessary to bring CPI [consumer price index] inflation back to the target in the medium term” an MPC statement said.

Guardian Unlimited Business | | Bank raises interest rates to 4.75%

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