The Bank of England has raised British interest rates to a six-year high of 5.5%, its fourth quarter percentage point increase since last August. Economists had been expecting the increase.
Many also predict a further increase, perhaps as soon as next month, as the economy has been growing strongly. House prices jumped another 1.1% last month, according to figures from lender Halifax, even though the BoE has raised rates from 4.5% since last summer.
British inflation hit 3.1% in March, more than a percentage point above the BoE's 2% target, forcing Governor Mervyn King to write an open letter of explanation to the government.
