Bank hikes interest to 2.25%

The Bank of England lifted its benchmark rate by half a percentage point, to 2.25%, the highest it has been since 2008. This was slightly lower than some expected; three members of the nineperson Monetary Policy Committee voted for a rise of three-quarters of a percentage point.

The Federal Reserve, America’s central bank, raised its benchmark interest rate by another three-quarters of a percentage point, to a range of between 3% and 3.25%. It was the third consecutive such increase. The Federal Reserve now projects the rate to rise to at least 4.25% by the end of the year.