Bank of England raises interest rates to 4%, the first increase for more than three years

Decision by MPC a week after the budget comes as Iran war continues to drive up energy costs

• Business live – latest updates

The Bank of England has raised interest rates for the first time in more than three years to combat rising inflation, as the Iran war continues to put upward pressure on energy costs.

The widely expected move, which took the Bank’s base rate from 3.75% to 4%, was the first rise since August 2023.