Bank of England raises interest rates

British householders were left reeling today after the Bank of England raised interest rates to 4.75%.

It is the first time rates have moved in a year and commentators said the decision from the Bank’s Monetary Policy Committee (MPC) was one of the most hotly debated for some time.

Although some analysts had forecast a rate hike, many believed the Bank would keep the cost of borrowing unchanged for the 12th month in a row.