Bank of England warns of longest recession in 100 years as it raises rates to 3%

The Bank of England cautioned further action would be needed on interest rates. Photograph: Yui Mok/PA

The Bank of England has warned the UK risked being plunged into the longest recession in 100 years after it pushed up the cost of borrowing to 3% in the biggest single interest rate rise since 1989.

A 0.75% increase, the latest in a series of eight interest rate rises since last year, would not be enough to guarantee victory in the war against double-digit inflation, the Bank said, as it cautioned further action would be needed.