Rate increase takes FTSE down 1.5%

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The FTSE 100 Index has fallen 88.20 points, or 1.5%, to 5,844 points in reaction to a shock hike in interest rates to 4.75%.

The surprise quarter point rate increase is the Bank of England's (BoE) first move in a year. The hike was followed by the European Central Bank (ECB) raising interest rates by a quarter point to 3%. The increase marks the ECB's fourth rate rise since December 2005. Property stocks are lower following the BoE's decision, with British Land down 4.57% to 1,315p, Persimmon down 4.79% to 1,232p and Land Securities 3.59% lower at 1,904p. Unilever is still leading the fallers, down 5.28% at 1,22p, despite reporting a big hike in second quarter profits. Barclays has fallen 1,83% to 616...

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