Bank of England raises UK interest rates to 4%

More pressure on mortgage payers and businesses after hike of 0.5 points lifts rates to 14-year high

The Bank of England has raised interest rates by 0.5 percentage points to 4%, piling more pressure on mortgage payers and businesses struggling to pay off their loans.

In a move expected by City economists, the Bank’s monetary policy committee voted for the 10th consecutive time to raise the cost of borrowing to a fresh 14-year high. UK rates are now at the highest level since October 2008, when the Bank had only just started cutting rates in response to the financial crisis.