The Bank of England has raised interest rates to 1.75% from 1.25% – the highest level since January 2009. The UK will enter five consecutive quarters of recession with gross domestic product falling as much as 2.1%, the Bank said.
Consumer Prices Index inflation is expected to peak at 13.3% in October, the highest level since September 1980, the Bank said.
The Bank of England’s monetary policy committee (MPC) of nine members voted eight to one in favour of a rise to 1.75%.
