The Bank of England on Thursday lived up to its promise to act “forcefully” to curb surging inflation, by announcing the biggest increase in interest rates for more than a quarter of a century.
But while the rise in borrowing costs was no more than analysts had expected, the central bank’s intensely gloomy view of the immediate economic outlook came as a shock.
BoE policymakers have stepped up the pace of monetary tightening despite predicting a recession set to match that of the early 1990s, and the biggest fall in household incomes for more than 60 years.
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