The Bank of England (BoE) has increased the base rate by 50 basis points to 3.5%, marking the ninth increase this year.

The Monetary Policy Committee (MPC) voted by a majority of 6-3 to increase the base rate by 0.50 percentage points, to 3.5%.

The members in the minority voted to maintain the bank rate and to increase the bank rate by 0.75 percentage points to 3.75%.

At the end of December last year, the base rate was 0.25%.

Yesterday the Office for National Statistics (ONS) reported that inflation in the UK was 10.7% in November.

The latest figure is down from the 11.1% reported in October.

In November, the bank pushed the base rate up by 75 basis points to 3%.

The MPC meeting minutes state: “There are considerable uncertainties around the outlook. The committee continues to judge that, if the outlook suggests more persistent inflationary pressures, it will respond forcefully, as necessary.”

The committee says it will take “the actions necessary to return inflation to the 2% target sustainably in the medium term, in line with its remit”.

It adds that the committee will “consider and decide the appropriate level of Bank Rate at each meeting”.

The next MPC meeting is scheduled for 2 February 2023.

The bank’s decision comes a day after the Federal Reserve in the US confirmed it will increase interest rates by 0.50 percentage points.

The Federal Open Market Committee (FOMC) voted unanimously to increase the federal funds rate to a target range of 4.25% to 4.5%

A statement from the FOMC said it will “continue to monitor the implications of incoming information for the economic outlook” and that it would be “prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the committee’s goals”.