Bank of England sets biggest interest rate hike in 33 years

The Bank of England has increased interest rates to three per cent in the biggest hike in 33 years as it tries to curb inflation.

The Monetary Policy Committee (MPC) raised the base rate by 0.75 percentage points this afternoon to 3 per cent after warning last month that growing inflationary pressures will require a “stronger response” than previously thought.

The decision has pushed the interest to its highest amount since 2008.

This is the eighth time in a row that the Bank has hiked interest rates. Less than a year ago the rate was 0.1 per cent.

A leading trade union has warned that a hike in interest rates will plunge more workers into debt and financial hardship amid fresh evidence of the impact of the cost-of-living crisis.