The UK is set to fall into its longest recession since the financial crisis and inflation will peak at more than 13 per cent as gas prices soar, the Bank of England has warned in a doomsday forecast.
Decision makers hiked the Bank's base interest rate to 1.75 per cent from 1.25 per cent, the biggest single rise since 1995, as they tried to control the runaway inflation.
Consumer Prices Index inflation will hit 13.3 per cent in October, the highest for more than 42 years, if regulator Ofgem hikes the price cap on energy bills to around £3,450, the Bank's forecasters said.
