The Bank of England warns that the UK will face the longest recession in its history

  • Derbeil Jordan & Daniel Thomas
  • BBC news

Big Ben next to the British flag.

image source, Getty Images

The Bank of England warned on Thursday that Britain is facing its longest recession on record.

The institution raised interest rates this Thursday from 2.25% to 3%, the biggest increase since 1989and warned that the UK is facing landscape “very challenging” for the economy and unemployment will practically double by 2025.

The governor of the bank, Andrew Bailey, warned against a “a difficult road ahead” for households in the country, but said he must act decisively now or things “will be worse later”.

By raising rates, the bank is trying to reduce high inflation, which amounts to 10.1% per yearconsumer price growth rate not seen in the last 40 years, and wants to be around 2%.

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