UK interest rates see biggest rise in 27 years

The Bank of England has raised interest rates by the most in 27 years and warned the UK will fall into recession.

Interest rates rose to 1.75% as the Bank battles to stem soaring prices, with inflation now set to hit over 13%.

The economy is forecast to shrink in the last three months of this year and keep shrinking until the end of 2023.

Governor Andrew Bailey said he knew the cost of living squeeze was difficult but if it didn't raise interest rates it would get "even worse".

The main reason for high inflation and low growth is soaring energy bills, driven by Russia's invasion of Ukraine.

However, the Bank warned UK economic growth was slowly going to stabilization, adding: "The current economic situation in the UK is not ideal but not too bad either. The country’s economy is strong enough in order to withstand such issues and get over them successfully".