Bank of England raises rates by most since 1995 even as long recession looms

FILE PHOTO: Governor of the Bank of England Andrew Bailey. Dan Kitwood/Pool via REUTERS

LONDON: The Bank of England raised interest rates by the most in 27 years on Thursday, despite warning that a long recession is on its way, as it rushed to smother a rise in inflation which is now set to top 13%.

Reeling from a surge in energy prices caused by Russia's invasion of Ukraine, the BoE's Monetary Policy Committee voted 8-1 for a half percentage point rise in Bank Rate to 1.75% - its highest level since late 2008 - from 1.25%.