Summary:
- The Bank of England has raised interest rates again by 0.5%, from 1.75% to 2.25, taking borrowing costs to their highest level since 2008
- It is the seventh time in a row the base rate has risen, and further increases are expected later in the year, with some analysts predicting a high of 3 per cent by the end of the year.
- The Bank also forecasts that the UK economy is already in recession - meaning two consecutive quarters of contraction
- Its monetary policy committee voted by 5-4 for the rate hike, with three members calling for a bigger rise and one arguing for it to be smaller
- Inflation is currently 9.9% and at its highest level in nearly 40 years, fuelled by rising energy costs and Russia’s war with Ukraine
