Bank of England 75 basis point hike pushes rates to 3%

Highest since 2008

The Bank of England has made its largest rate hike since 1989, hiking interest rates by 0.75%.

The rise brings interest rates to 3%, the highest figure since the global financial crisis in 2008. The central bank's Monetary Policy Committee voted seven to two to hike rates, with one member voting to hike rates by 0.5% and one voting to hike rates by just 0.25%. The report from the MPC warned of a "very challenging outlook" for the UK economy, adding that it currently forecasts a prolonged recession. Inflation rates are now expected to peak at about 11% this quarter, which is slightly lower than what had been projected by the bank in August, which it attributed to the energy p...