Interest rate increase

The Bank of England has increased interest rates by 0.25 per cent to 3.75 per cent – the first rise in almost four years.

The decision to increase rates came following a meeting of the Monetary Policy Committee held this morning. The last change in rates was a reduction to 3.5 per cent in July – its lowest level since 1955.

A Bank of England statement said: "The global economic recovery appears to be gathering momentum, growth in the United Kingdom has picked up and credit growth...

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