Interest rate rises to 3% as Bank of England imposes biggest hike for three decades (Sky News)

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    Interest rate rises to 3% as Bank of England imposes biggest hike for three  decades | Business News | Sky News

    Interest rate rises to 3% as Bank of England imposes biggest hike for three decades – By Ed Conway (Sky News) / Nov 3, 2022

    A gloomy update from the Bank of England provides no upwards pressure for the pound, which had slumped against a surging dollar earlier in the day and later fell further to $1.11.

    The Bank of England has raised the base rate of interest by 0.75 percentage points to 3% – the single biggest increase in more than three decades – and said that the UK is already in recession.

    The Bank warned that the UK could face a protracted contraction in the coming years, with high inflation and the unemployment rate climbing to 6.5% – the highest since the financial crisis.

    The length of its forecasted recession – eight successive quarters in which gross domestic product shrinks – would make it the most protracted since comparable records began – albeit less deep than most previous downturns, including those in 2008/2009 and the 1980s.

    The economy would still be well below its 2022 size at the end of 2025.

    CONTINUE: https://news.sky.com/story/interest-rate-rises-to-3-as-bank-of-england-imposes-biggest-hike-for-three-decades-12736964

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