Following its September policy meeting, the Bank of England (BoE) announced that it raised the policy rate by 50 basis points (bps) to 2.25%. Although this decision came in line with the market expectation, futures markets were pricing in a strong chance of a 75 bps hike.

Follow our live coverage of the BoE policy announcements and the market reaction.

Key takeaways from policy statement

"MPC votes 5-4 to raise bank rate to 2.25%."

"MPC members Haskel, Mann and Ramsden voted to raise rates to 2.5%; MPC's Dhingra voted for 2%."

"MPC voted 9-0 to reduce stock of government bonds by 80 bln stg over next 12 months to 758 bln stg."

"Reduction in gilt holdings is in line with strategy announced in August."

"Inflation to peak at just under 11% in October (Aug forecast: 13.3% in Oct)."

"CPI expected to remain above 10% for a few months after Oct, before falling."

"Q3 GDP seen -0.1% QQ (Aug forecast: +0.4% QQ), second successive quarter of contraction, meets definition of technical recession."

"UK energy price guarantee will significantly limit further inflation rises, support demand relative to aug forecasts."

"MPC will respond forcefully, as necessary, to more persistent inflation pressures."

"Energy price guarantee adds to inflation pressure in medium term."

"Will assess monetary policy implications of government growth plan in nov forecasts."

"Energy price guarantee may reduce risk of persistent domestic price and wage pressures, but risk remains material."