Bank of England hikes interest rates to 3%
James ChappleThe Bank of England has increased interest rates from 2.25% to 3% – the biggest single rise in the cost of borrowing for more than 30 years.
The increase, announced on Thursday (3 November), is the eighth in succession, and the first since Liz Truss and Kwasi Kwarteng’s disastrous mini-Budget.
Truss and Kwarteng’s plan spooked the financial markets, sending mortgage rates in particular soaring.
How are you coping? Take TTG’s cost of living survey
The knock-on effect of another increase in interest rates will be significant for individuals and businesses alike, with more rises expected in the coming months to tackle inflation, which hit 10.1% in September.
The 0.75% increase in the biggest single hike since 1989, while the new rate of 3% is the highest since November 2008 at the height of the then-financial crisis.
Immediately after the announcement, the value of the pound fell to 1.123 against the US dollar and 1.15 against the euro.
The Bank of England further warned on Thursday the UK would likely face the longest recession for 100 years, which could last into the first half of 2024.
Take TTG's cost of living survey
TTG has launched a cost of living crisis survey to find out how members of the UK travel trade are coping in the current tough economic climate.
With inflation soaring, bill pressures rising and household budgets stretched, it's not an easy time to be in an industry that – historically – hasn’t paid as well as others.
We’d like to find out – in this completely anonymous survey – how the travel trade is making ends meet. We will then use the results to push for more support for those working in travel.
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James Chapple
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