Bank of England raises rates despite warnings of future pain.

The Bank of England has raised its key interest rate by a quarter of a percentage point to 4.5%, marking the 12th consecutive increase in a row. Governor Andrew Bailey said the central bank would "stay the course" as it seeks to curb the highest inflation of any major economy. The BoE is no longer predicting a recession after it made the biggest improvement to its growth projections since it first published forecasts in 1997. However, it now expects inflation to fall more slowly than it had hoped, mostly due to unexpectedly big and persistent rises in food prices.