The Bank of England raises interest rates by 0.75% to 3% – the biggest hike since 1989
It also forecasts that the UK is facing a “very challenging” two-year recession – which would be the longest on record
The higher interest rate will be welcomed by savers, but the rise will have a knock-on effect on for those with mortgages, credit card debt and bank loans
Interest rates have been rising since December in an effort to curb soaring prices – inflation is at its highest for 40 years
Today’s rise follows economic turmoil under Liz Truss’s government; though things have calmed slightly since Rishi Sunak took over
Sunak has promised a new plan to repair the nation’s finances later this month but tax rises and spending cuts are expected
The BoE voted to lift borrowing costs to three percent, the highest level since the 2008 global financial crisis and said Britain was in a recession set to last until the mid-2024.
