business news

Bank of England raises rates by most in 27 years even as long recession looms

Bank of England raises rates by most in 27 years even as long recession looms
11

The Bank of England raised interest rates by the most in 27 years on Thursday in a bid to squelch soaring inflation on its way to a top 13%, even as it warned a long recession was looming.

BoE rate makers, reeling from a surge in energy prices following Russia’s invasion of Ukraine, voted 8-1 to raise the bank rate by half a percentage point to 1.75%, the most since late 2008.

The big increase was expected by most economists polled by Reuters as central banks around the world scramble to contain soaring prices.

Sterling fell as the BoE said Britain would enter recession at the end of 2022 and not exit until early 2024.

Comment here