BREAKING NEWS! Interest rates: Bank of England confirms rise to 1.75% as inflation to hit 13%

Interest rates: Bank of England confirms rise to 1.75% as inflation to hit 13%

The Bank of England has hiked the interest rate to 1.75 per cent in the biggest increase for 27 years.

The cost-of-living crisis will continue throughout next year and only begin to ease in 2024, with the UK economy contracting for five consecutive quarters, according to the Bank’s latest forecasts.

Inflation is set to surge to 13.3 per cent this winter when soaring gas prices mean that consumers face average energy bills of £3,500 - up from £1,200 a year ago - the Bank said.

Households face the longest and sharpest fall in living standards on record as energy bills triple and the UK plunges into a deep and protracted recession, the Bank of England has warned, in one of its bleakest ever assessments of the economy.

The Resolution Foundation think tank has warned that next year inflation could reach an “astronomical” record-high of 15 per cent – the highest level since 1980.

***Source: Independent News

https://www.independent.co.uk/news/business/news/uk-interest-bank-of-england-inflation-b2137752.html