International Business

Britain Raises Interest Rates: The government raised interest rates by a half point, calming jittery financial markets after a major defeat in its bid to fill a budget gap by raising domestic fuel taxes. Britain’s top treasury official, Chancellor of the Exchequer Kenneth Clarke, said the increase in the base rate to 6.25% from 5.75% was in line with the government’s policy of holding back inflation. Clarke also said he wanted to ease uncertainty in Britain’s financial markets, which for weeks had been full of speculation about higher interest rates.