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

Base rate increases from 3.75%, and Bank governor signals another rise in near future to combat rising inflation

The Bank of England has raised interest rates for the first time in three years and warned of another increase to come to combat rising 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.

The Middle East conflict has pushed oil prices persistently above $100 in recent months, as hopes have evaporated of a deal that could reopen the key strait of Hormuz.