Industry reaction: Bank of England rate rise only pushing problems further down the line

The BoE raised interest rates to 1.25%, up from 1% in its continued battle to fight inflation in the UK, which it expects to peak at 11% in October. It was the bank's fifth consecutive 0.25% rise and takes the interest rate above 1% for the first time in 13 years. However, many were expecting a more ambitious rise, similar to the 0.75% increase taken by the Federal Reserve, which has taken the federal-funds rate to between 1.5% to 1.75%. The lower rise has raised concerns that sterling will face stronger competition from the dollar. Chris Beauchamp, chief market analyst at the t...