Business
Interest rates hiked to 4% in first increase in over three years
Most analysts expected the increase from 3.75% to 4%.
BBC Business•
The Bank of England has hiked interest rates for the first time in more than three years as it attempts to curb rising prices.
Rates were increased to 4% from 3.75% in a decision that was widely expected as petrol and diesel prices fuel inflation.
The increase will push up the cost of borrowing money for things such as mortgages, loans and credit cards.
A 0.25 percentage point rise would mean a £31 increase in monthly repayments for someone with a typical tracker home loan, according to calculations by banking trade body UK Finance.