The Bank Of England Raises Interest Rates To 1.75 And Warns Of A Long Recession Business

In a drastic set of forecasts for the economy, the Bank said households would suffer a record two years of falling incomes as the global gas crisis pushed up energy bills. The Bank raised its key interest rate from 1.25 to 1.75 percent, the biggest single increase since 1995, as it sought to control spiraling inflation. Real household income, which is the value of pay after adjusting for inflation, will fall by 1.5 percent this year and 2.25 percent next year, the biggest drop on record