With inflation at 8.7%, monetary policy committee raised interest rate to 5%
Inflation held steady at 8.7% in the year to May, against expectations for a modest decline
“We have to support the Bank of England” in “difficult decisions,” Jeremy Hunt tells Sky News
Inflation falls to 8.7% largely because last year's energy spike has dropped out of the annual comparison
The hike — the 12th in a row — puts more pressure on borrowers
The BoE is the first central bank in a major economy to raise interest rates since the pandemic began
A bigger than foreseen increase in consumer spending has lifted the U.K. above Italy
The central bank halted dividend hikes for lenders last March before loosening restrictions in December
The bank is projecting economic growth of 7.25% for the U.K. in 2021
The new currency would exist alongside cash and bank deposits