BoE raises rates quarter point

The Bank of England raised interest rates a quarter percentage point on Thursday for the second time in three months, and economists predicted more hikes to cool the British economy starting in the spring.
Analysts had been almost unanimous in expecting the rise, which took the repo rate to 4.0 percent, after the Bank's first warning shot in November had little effect. Recent data pointed to the economy growing above its sustainable rate, retail sales sizzling and business confidence improving.
The BoE said in a statement accompanying its decision it was still worried about the continued strength of the British housing market and consumer debt levels.
"Although sterling has appreciated, continued growth above trend means that inflationary pressures are likely to pick up gradually over the next couple of years," it added.
It also said the global economic recovery had become more even and British growth in the second half of last year was "above trend" - the long-term average rate - while business surveys pointed to a further pickup.