UK interest rates hit their highest level in more than six years on Thursday after the Bank of England raised the cost of borrowing to 5.5 per cent.

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Chris Giles on the Bank of England’s decision to raise interest rates to 5.5 per cent

The 25 basis point increase, which had been expected by most economists, means Britain has now overtaken the US to shoulder the steepest borrowing costs of the G7 group of industrialised countries.