Bank of England under pressure to raise interest after US central bank hikes rates for first time since 2023

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The decision is an admission President Donald Trump's administration has been unable to control inflation

The Bank of England is under pressure to raise interest rates after the US central bank has hiked interest rates for the first time since 2023.

The decision was was unanimous among Fed policymakers to raise rates, with all 12 voting in favour of a rise.

The Fed has increased its rate from 3.5 per cent-3.75 per cent to 3.75 per cent-four per cent.

It is the first policy shift under the new Fed chief, who took office in late May after being selected by President Trump with an expectation that he would cut rates.