Bank boss says ‘absolute priority’ to control inflation as rates jump to 1.75%

The dire economic conditions will see real household incomes drop for two years in a row, for the first time since records began

INFLATION RATES JUMP: Governor of the Bank of England, Andrew Bailey, during the Bank of England's financial stability report press conference

In the biggest single rise since 1995, bank policymakers raised interest rates to 1.75% from 1.25% as they tried to control the runaway inflation. He said: “I recognise the significant impact this will have, and how difficult the cost-of-living challenge will continue to be for many people in the United Kingdom.

The dire economic conditions will see real household incomes drop for two years in a row, the first time this has happened since records began in the 1960s. They will drop by 1.5% this year and 2.25% next.However, the recession will at least be shallower than the 2008 crash, with GDP dropping up to 2.1% from its highest point. The Bank said the depth of the drop is more comparable to the recession in the early 1990s.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

InYourArea_UK /  🏆 114. in UK

Ireland Latest News, Ireland Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Recession: Was the Bank of England right to raise interest rates?The Bank of England warns the UK will fall into recession as it raises interest rates from 1.25% to 1.75%.
Read more »

Football ticket scams increase ahead of new season, Lloyds Bank warnsThe bank urged people to be cautious when buying tickets for major events and to buy tickets directly from clubs or official ticket partners.
Read more »

The Bank of England is set to raise interest rates by the highest level in 27 yearsThe Bank of England is set to raise interest rates by the highest level in 27 years, with economists warning that inflation could hit 15% this year.
Read more »

Britain is heading for long recession, Bank of England warns as it imposes biggest interest rate rise in 27 yearsThe Bank of England will have to raise interest rates even further if it does not act now to curb inflation, governor Andrew Bailey has warned.
Read more »