BoE raises rate to 1% as recession risks mount
Inflation expected to climb above 10% and GDP growth to drop to around zero
The Bank of England increased the policy rate by 25 basis points to 1% today (May 5), as it warned inflation is likely to rise above 10% this year, the highest rate since 1982.
It marks the first time the Bank of England has raised interest rates four times in a row since its foundation in 1694.
The UK has met with a succession of shocks, which “monetary policy was unable to prevent”, said governor Andrew Bailey. Most recently, Russia’s invasion of Ukraine has triggered a surge in energy
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