The Bank of England has raised interest rates to 2.25% from 1.75% – the highest level since November 2008.
People across the UK are bracing themselves for further problems after the Bank also said it now expects a 0.1% fall in GDP over the current quarter, indicating that the country is already in a recession.
Five members of the Bank of England’s Monetary Policy Committee voted to raise its interest base rate from 1.75% to 2.25% while three voted for a steeper increase to 2.5%, the Bank said.
