Interest rate rises to 3% – biggest increase in decades – BBC News
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The Bank of England is raising interest rates by 0.75% to 3% – the biggest hike in more than three decadesIt also forecasts the UK is facing a “very challenging” two-year recession – the longest on recordThe interest rate affects things like mortgages, repayments of credit card debt, and the interest paid on savings accountsInterest rates have been rising since December to curb inflation – the measure of the rate at which the cost of basic goods and services is risingToday’s rise follows economic turmoil under Liz Truss’ government; although things have calmed down a bit since Rishi Sunak took overSunak has promised a new plan to fix the nation’s finances later this month, but tax hikes and spending cuts are expectedThe war in Ukraine and the long recovery from the pandemic are also contributing to rising energy and food costsThe BBC today also hears from people in Derby how rising living costs, such as utility bills, are affecting them- live reporting
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