The Bank of England has announced another quarter point rise in interest rates.

Members of the monetary policy committee decided on Thursday to raise rates to 4.5 per cent.

For the first time in four years the Bank voted for back-to-back rate rises, following May's quarter point rise.

The MPC was unanimous in last month's decision but the minutes of this month's meeting are thought more likely to show a split in the vote.

Strong growth in retail sales and house prices were fuelling pressure for another hike, with the previous rise not looking to have had much impact on controlling prices.

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The Council of Mortgage Lenders said that the rise was in line with expectations.

"The Bank has been clearly signalling that more rate rises were likely, so today's decision has largely been anticipated by the markets," CML head of research Bob Pannell said.

"But it is still noteworthy, as it is the first time the MPC has announced a back-to-back monthly increase since early 2000. This confirms the Bank is taking a more aggressive approach than in the recent past, in the light of growing inflationary pressures.

"For mortgage borrowers, the quarter-point rate rise adds around £15 to the monthly cost of a £100,000 mortgage if lenders raise rates by the same amount.

"This rate rise is unlikely to be the last, and borrowers should arrange their finances to be able to cope with moderately higher rates over the coming year or so."

CBI director general Digby Jones said "business accepts this latest rise as long as the motive is to ensure that interest rates peak at the lowest possible level.

"But, consecutive rises do mark a shift from the gradualist, well signalled MPC policy of the past and will do little to control house prices, rising due mainly to lack of supply in the housing market, or the inflationary effect of wage increases evident in the public sector," he added.

Institute of Directors chief economist Graeme Leach said: "A back-to-back interest rate rise was always likely given the continued strength of household spending and house prices.

"The IoD has argued that consumers will respond to higher interest rates, despite the limited evidence to date.

"First, because total debt servicing costs (including all interest charges and repayments of principal), are now relatively high, not low.

"Second, the relationship between house prices and consumption appears to be weaker in this economic cycle, suggesting the potential spending boost from greater housing wealth can be brought under control."