BoE surprises markets with rate rise

The Bank of England unexpectedly raised interest rates by a quarter-point on Thursday 11 January, the third increase since August, saying inflation may accelerate.

The nine-member Monetary Policy Committee lifted the repurchase rate to a five-year high of 5.25 percent today, surprising all of the 52 economists in a Bloomberg survey.

Risks of faster inflation ``now appear more to the upside,'' the bank said in a statement.

The pound rose and bonds fell.

Britain's inflation rate rose to 2.7 percent

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