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

• Analysis: Interest rate rise in midst of cost of living crisis will leave many incredulous

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

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