Bank of England raises rates sharply and warns of 13% inflation by end of year

UK faces protracted recession and biggest squeeze on living standards in 60 yearsBritain faces a protracted recession and the worst squeeze in living standards in more than 60 years after the Bank of England raised interest rates sharply and forecast inflation would hit 13 per cent by the end of the year.

The Bank’s nine-member Monetary Policy Committee voted 8-1 to raise interest rates by 0.5 percentage points to 1.75 per cent on Thursday, the biggest increase in 27 years.