The Bank of England has raised interest rates from 1% to 1.25% as it tries to get a handle on soaring inflation
The rate rise follows another last month, when rates went up from 0.75% to 1% - they are now at the highest since 2009
Raising the interest rate is one way to curb inflation - by making borrowing more expensive and encouraging people to spend less
The UK's inflation rate - the increase in prices for goods and services - hit 9% last month, with warnings it could top 10% this year
Raising the interest rate makes mortgages and loans more expensive but increases the return on savings
Yesterday, the US central bank
