Bank of England raises interest rates for 12th consecutive time to curb rising inflation

Base rates hit 4.5% for first time since 2008

UK interest rates are at their highest level in 15 years after the Bank of England announced a 12th consecutive increase – but it forecast inflation would finally dip by the end of this year.

Seven members of the Bank’s Monetary Policy Committee (MPC) voted to increase the base rate to 4.5% from 4.25%, representing a 0.25 percentage point rise.

It is the highest level since 2008, and threatens higher bills for hundreds of thousands of homeowners.