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

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The Bank of England has raised interest rates for the first time in three years and warned of another increase to come, to combat soaring inflation unleashed by the Iran war.

Eight members of the Bank’s monetary policy committee (MPC) voted for the move, which takes the base rate from 3.75% to 4%. The ninth member, Catherine Mann, preferred a more dramatic half-point increase.