Financial TimesFinancial Times

Bank of England raises rates sharply and warns of 13% inflation by end of year

By George Parker

04 Jul 2022 · 3 min read

Editor's Note

You should read this to discover why the Bank of England voted to increase interest rates once again and what it could mean for Britain.

UK faces protracted recession and biggest squeeze on living standards in 60 yearsBritain faces a protracted recession and the worst squeeze in living standards in more than 60 years after the Bank of England raised interest rates sharply and forecast inflation would hit 13 per cent by the end of the year.

The Bank’s nine-member Monetary Policy Committee voted 8-1 to raise interest rates by 0.5 percentage points to 1.75 per cent on Thursday, the biggest increase in 27 years.

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