Bank of England raises interest rate to 2.25% from 1.75%

Bank of England (BoE) raised its key interest rate from 1.75% to 2.25% on Thursday and said it would continue to "respond forcefully, as necessary" to inflation. BoE's Monetary Policy Committee also voted unanimously to reduce its government bond holdings worth £838 billion by £100 billion over the coming year. Inflation in October to peak at about 11%, BoE said.