THE GUARDIAN: Bank fears 0.75 percentage point rise may push UK economy into longer and deeper recession than the 1930s
The Bank of England has increased the cost of borrowing by 0.75 percentage points to 3%, despite predicting that higher interest rates would push the economy into the longest recession since the 1930s.
In a split vote, the central bank’s monetary policy committee (MPC) voted by a 7-2 majority for the biggest increase in rates since 1989 to combat an inflation rate that hit 10.1% in September.
The Bank blamed higher energy prices and a tight labour market for the decision to increase interest rates, matching rises in the last week by the US Federal Reserve and the European Central Bank. » | Phillip Inman | Thursday, November 3, 2022
Bank of England warns of longest recession since the 1930s: Interest rate rise to 3% is biggest since 1989 and fears UK economy may go into longer, deeper recession »
