An interest rate hike of 0.5% is confirmed as the Bank of England takes its biggest step yet in the fight against inflation.
The City expected rates to reach 1.75% in what was the biggest single increase in 27 years and the first of its size by the Bank’s Monetary Policy Committee since it was set up in 1997. The BoE also predicted a UK recession starting late this year and lasting for five quarters.
In corporate updates, retailer Next has increased its full-year profits guidance by £10 million to £860 million. It reported a surge in formalwear sales, driven by pent-up demand as social events return after the pandemic.
