Before the Iran war the Bank of England's nine-member monetary policy committee had been expected to cut interest rates this year.Photograph: Thomas Krych/Zuma Press Wire/Shutterstock

The Bank of England has raised interest rates for the first time in three years and warned of another increase to come to combat soaring inflation unleashed by the Iran war.

Eight members of the Bank's monetary policy committee (MPC) voted for the move, which takes the base rate from 3.75% to 4%. The ninth member, Catherine Mann, preferred a more dramatic half-point increase.