Bank of England raises rates by 25bp

The Bank of England’s Monetary Policy Committee increased interest rates by 25bp to 1.25% at their June meeting.

The MPC voted 6-3 for increase with the other MPC members voting for a 50bp rise.

In a statement with the decision the BoE said it expected CPI inflation to peak at slightly above 11% in October due to higher energy prices following an increase in the Ofgem price cap.