The Bank of England (BoE) increased interest rates by 0.5% to 4% on Thursday, saying that that inflation was falling in the UK but not fast enough.

Inflation reached 10.5% in December, down from the 41-year high of 11.1% in October and 10.7% in November.

This is the second consecutive 0.5% increase, following rises of 0.75% earlier in 2022. The bank cited the war in Ukraine and increased demand for goods related to COVID-19 as factors contributing to recent inflation.

(Reporting by Imogen Lillywhite; editing by Seban Scaria)