Stock markets volatile after Bank of England raises interest rates

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The Bank of England has increased interest rates again -- for the ninth time in a row -- as part of efforts to counter inflation. The basic rate is going up by half of one per cent -- to three and a half per cent. Meanwhile the European Central Bank has also increased its main interest rate by 0.5% to 2.5% - following Wednesday's rise by the US Federal Reserve. It all leads to stock market falls over the world - we explain why. Plus we're in the US where Washington DC could soon become the largest city in the country to introduce free bus travel. Photo credit: John Walton/PA Wire