The Bank of England has warned the UK faces a \”sharp economic slowdown\” this year as it raises interest rates to try to stem the pace of rising prices.
Rates rose to 1% from 0.75%, their highest level since 2009 and the fourth consecutive increase since December.
Inflation – the rate at which prices rise – is at a 30-year high and set to hit 10% by the autumn as the Ukraine war drives up fuel and energy prices.
As a result, households are reining in their spending which is hitting growth.
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