Bank raises interest rates
Interest rates have been raised by the Bank of England for the first time in more than three years in response to calls to tackle surging inflation.
The Monetary Policy Committee voted 8-1 in favour of the increase to 0.25 per cent.
Rates were cut to a record low of 0.1 per cent in March last year in response to the effects of the coronavirus pandemic.
The increase came despite fears that the Omicron variant of Covid could slow the UK economy by causing people to spend less.
The last time the Bank raised interest rates was in August 2018, when they reached 0.75 per cent.
They were cut twice in March 2020, at the start of the pandemic.
Figures showed the cost of living surged by 5.1 per cent in the 12 months to November, up from 4.2 per cent the month before – its highest level since September 2011.