The Bank of England had tightened monetary screws, but increasing the base rate by 0.5 percentage points.
Interest Rates now the highest since December 2008.
The committee voted 5-4 in favour of a hike to 2.25%, with three members preferring to increase the Bank Rate by 0.75 percentage points, and one member favouring a 0.25 percentage point increase.
Inflation is now expected to reach just under 11% in the final quarter of the year, lower than the 13% expected in August.
Chris Fletcher, Policy & Campaigns Director at Greater Manchester Chamber of Commerce, said:
“This is worrying news from the Bank of England. The options available to the Bank for reining in inflation are limited. Putting interest rates up appears to be the preferred solution although it is not without downsides. High inflation is causing serious problems for business, but increased interest rates will also have an impact on households and businesses alike.
“Our last Quarterly Economic Survey showed that the economic outlook was weakening as inflation, supply chain disruption and a fall in consumer spending were all having an impact on businesses.
“We would hope that the Government’s recent announcement on energy support for households and businesses will help boost to confidence, but these are still challenging times for businesses.
“I would urge one note of caution – in the past figures have suggested that the UK was in recession, only for the figures to be revised at a later date. We will have a clearer picture of the economic situation in Greater Manchester when our latest Quarterly Economic Survey results are released next week.”
Alpesh Paleja, CBI Lead Economist, said:
“Against the backdrop of stubbornly high inflation, another hefty rise in interest rates was largely expected.
“While the freezing of the energy price cap will reduce near-term peak inflation, price pressures are still set to remain strong and the MPC will be keeping a close watch in the coming months.
“With signs of an economic downturn coming down the track, firms will be looking to the fiscal statement to help perk up confidence and get more firms investing and growing.”
