The Bank of England hikes its benchmark rate and warns of an impending recession
The Bank of England announced the steepest interest rate hike since 1995 on Thursday, as it battles against soaring inflation.
The regulator increased its benchmark rate by half a percentage point to 1.75% in the sixth interest rate rise since December.
The bank also forecast a recession in the UK, warning that the economy will start shrinking in the fourth quarter of this year and will keep contracting throughout next year.
Britain's inflation soared to 9.4% in June, and according to various estimates it could increase to between 11% and 15% by early next year. Rising prices are being driven mainly by surging energy and food costs.
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