UK economy to be in recession for more than a year, Bank of England warns as it hikes rates

UK

The Bank of England has hiked interest rates by half a percentage point – the sixth rise since December and the biggest rise since 1995.

This means the bank rate now stands at 1.75% – its highest level since late 2008 at the beginning of the global financial crisis.

It will increase borrowing costs for millions of people, including those who have tracker rate mortgages.

Increasing rates is one of the bank’s main tools to fight inflation, which has soared to 9.4% and could reach 15% early next year, according to this week’s analysis by the Resolution Foundation thinktank.

The bank was under pressure after big hikes by the US Federal Reserve and the European Central Bank.

Articles You May Like

Adobe shares fall 9% on weak fourth-quarter guidance
U.S. crude oil trades above $70 per barrel as Gulf of Mexico production recovers
YouTube announces AI features from Google DeepMind for Shorts creators
Oil stares at a bleak future as China’s economy sputters. The good news: A market ‘bust’ is unlikely
British citizen among 37 people sentenced to death in DR Congo