Bank of England raises interest rates to 14-year high; Donohoe in new inflation warning

The Bank of England (BoE) raised its key interest rate to 2.25 per cent from 1.75 per cent on Thursday and said it would continue to “respond forcefully, as necessary” to inflation, despite the economy entering recession. The BoE estimates the UK’s economy will shrink 0.1 per cent in the third quarter – partly due to the extra public holiday for Queen Elizabeth II’s funeral – which, combined with a fall in output in the ...