Bank of England makes biggest interest rate hike in 30 years

By DANICA KIRKA
Associated Press

LONDON (AP) — The Bank of England has announced its biggest interest rate increase in three decades as it tries to beat back stubbornly high inflation fueled by Russia’s invasion of Ukraine and the disastrous economic policies of former Prime Minister Liz Truss. The bank boosted its key rate by three-quarters of a percentage point Thursday, to 3%, after consumer price inflation returned to a 40-year high in September. The aggressive move comes as the bank predicted a two-year economic contraction through June 2024. The Office for National Statistics says that would be the longest recession since at least 1955. It comes a day after the U.S. Federal Reserve announced a fourth consecutive three-quarter point jump.