Inflation worries trigger UK rate rise

BRITISH interest rates are on the way back up for the first time in four years.

In a move that was well expected, the Bank of England, raised British interest rates by a quarter point to 3.75%, yesterday. The move is designed to keep house price inflation and borrowing in check.

Many analysts believe the move marks the end of the cutting rate cycle which has pushed US interest rates to near 50-year lows of 1% while the ECB at 2% is also at historic lows.