World
Updated: August 04, 2022

Bank Of England Raises Interest Rates Amid Inflation

By Quadri Adejumo
August 04, 2022
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The United Kingdom’s central bank has made its biggest increase to interest rates in 27 years amid inflation and warned the country faces a long recession ahead.

Aljazeera reports that the Bank of England’s (BOE) Monetary Policy Committee voted 8-1 on Thursday for a half percentage point rise in its key interest rate to 1.75 percent.

The rate is now at its highest level since the depths of the global financial crisis in December 2008.

The BOE also predicted that inflation will reach in excess of 13 percent in the final three months of the year, its highest level for 42 years and remain very elevated for much of 2023.

It also warned that the UK was facing a recession.

The economy will begin to shrink in the final quarter of 2022 and contract throughout all of 2023, making it the longest recession since the 2008 downturn.