Bank of England raises interest rate to 3.5% – highest level in 14 years

Workers’ pay demands have been largely in response to cost of living pressures caused by soaring inflation.

In an effort to curb it, the Bank of England  has raised the UK’s interest rate to 3.5% – taking it to its highest level in 14 years.

Governor Andrew Bailey says inflation was past its peak but that prices were expected to remain very high over the next couple of months.