Majority of MPC rate-setters back hike of 0.5 percentage points despite fears UK is entering a long recession
- Analysis: UK borrowers face a serious reality check
Mortgage payers are braced for higher borrowing costs, after the Bank of England pushed up its base rate by 0.5 percentage points to 3.5% despite saying inflation has peaked and Britain is about to enter “a prolonged recession”.
The Bank hiked interest rates on Thursday for the ninth time in a year, to the highest level in 14 years, but told borrowers to prepare for fresh increases in the new year.
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