Bank of England raises interest rates amid UK economic optimism.

The Bank of England has raised interest rates to 4.25% from 4% after the inflation rate rose unexpectedly last month. The UK financial system was deemed "resilient" and the country is no longer heading into an immediate recession. The Bank's governor, Andrew Bailey, said he was "much more hopeful" for the UK economy, but warned that the country was "not off to the races" and expected only slight growth in the coming months. The rise in rates means mortgage costs for some homeowners will increase, while some savers could get better returns.