The UK’s Bank of England has raised its base rate by 0.25% to 4.5%, its highest level since October 2008.

The central bank said UK inflation is too high, at around 10% since summer 2022 but that it expected inflation to fall quickly this year to meet a 2% target by late 2024.

The bank once again said the Russian invasion of Ukraine had contributed to price rises in gas and food stuffs such as wheat, leading to inflation, adding that interest rates needed to be raised to combat it.

The move follows the US Federal Reserve rate increase of 0.25% last week. 

(Reporting by Imogen Lillywhite; editing by Seban Scaria)