Bank of England raises interest rates by 0.5 percentage points to 1.75%

Britain faces a protracted recession and the worst squeeze on living standards in more than 60 years, the Bank of England warned on Thursday, as it raised interest rates sharply and forecast inflation would hit 13 per cent by the end of the year.

Eight of the Monetary Policy Committee’s nine members voted to raise interest rates by 0.5 percentage points to 1.75 per cent, the biggest increase in 27 years.

The BoE’s move follows…