The Bank of England has warned the UK will see its longest recession since records began
, as it raised interest rates by the most in 33 years.
In its outlook for the UK economy, it said the country would face a "very challenging" two-year slump.The Bank lifted the UK interest rate to 3% from 2.25%, the biggest increase since 1989.Interest rates have been rising since last December as the cost of living has accelerated.The Bank believes by raising rates it will make it more expensive to borrow and encourage people not to spend money so easing pressure on prices.
The news 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.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Bank of England warns of 'longest recession' as interest rates rise to 3 per centThe Bank warned the UK could be on course for its longest recession since reliable records began a century ago as it announced the decision.
Read more »
Bank of England due to announce biggest interest rate rise since the 1980sThe Bank of England is expected to unveil the biggest interest rate rise since the 1980s on Thursday as it tries to control runaway inflation which is battering British households.
Read more »
Bank of England announces biggest interest rate rise in more than 30 yearsBREAKING: The Bank of England has unveiled the biggest interest rate rise in more than 30 years, which could see Homeowner's annual mortgage repayments go up by hundreds of pounds.
Read more »
Bank of England hikes interest rates to highest for 14 yearsThe Bank warned that the UK could be on course for two years of uninterrupted recession.
Read more »
Bank of England raises interest rates by 0.75 percentage points\n\t\t\tKeep abreast of significant corporate, financial and political developments around the world.\n\t\t\tStay informed and spot emerging risks and opportunities with independent global reporting, expert\n\t\t\tcommentary and analysis you can trust.\n\t\t
Read more »
Bank of England hikes interest rate by 0.75% to 3% - as UK heads for 'longest recession in history'The Bank of England hiked interest rates to 3% from 2.25% on Thursday as it tries to control runaway inflation which is battering British households.
Read more »