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Bank of England raises UK interest rates by quarter-point to 4.25%

Monetary policy committee votes to increase base rate after February’s surprise rise in inflation

The Bank of England has raised interest rates by a quarter of a percentage point to 4.25% in response to higher than expected UK inflation and signs that Britain’s economy is holding up better than feared.

In a fortnight of heightened unease across global financial markets, the Bank’s monetary policy committee (MPC) voted by a majority of seven to two to increase the base rate for the 11th time in a row.

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