Bank of England warns inflation will surge by next summer, as it hikes UK interest rates to 4% – business live

UK hit by first interest rate rise in three years, as Bank predicts inflation will approach 5% by middle of 2027 UK government bond prices are also rallying today. This has pushed down the yield, or rate of return, on UK 10-year gilts by 4 basis points (0. 04 of a percentage point) to the lowest since August 28, below 5. 1%.