The Bank of England has raised interest rates from 0.25% to 0.5% as it attempts to tame inflation. This is the first back-to-back interest rate rise since 2004 and thus intensifies the squeeze on household finances, with inflation forecast to increase to 7.25% in April. This all comes amid the perpetual concerns about inflation, which is threatening to fuel a cost-of-living crisis for British households. The Bank's Monetary Policy Committee voted on the rate decision today and the majority was slim, by five to four. The minority wanted an even larger increase to 0.75 per cent to get a further grip on surging inflationary pressure. The markets have responded to this emphatically with 3-year yields at long-term highs and 10-year and 30-year yields also hitting long-term highs. The pound strength to the euro (1.2049) is also the highest it has been since 2016. This all represents traders' worries about inflationary pressures, which seem more prevalent than what was already priced in.