The Bank of England leading rage is rising again in an attempt to contain rampant inflation.
The Monetary Policy Committee voted by a majority of 8-1 to increase the lending to 0.75%.
A month ago the Bank of England forecast inflation would peak at 7.25% in April.
The Bank now expects it to hit 8% this Spring and warns it could head towards 10% later in the year. Its target rate is 2%.
The bank said that the invasion of Ukraine by Russia has led to further large increases in energy and other commodity prices including food prices.
It is also likely to exacerbate global supply chain disruptions, and has increased the uncertainty around the economic outlook significantly. Global inflationary pressures will strengthen considerably further over coming months, while growth in economies that are net energy importers, including the United Kingdom, is likely to slow.
