Bank of England Makes , Biggest Interest Rate Hike in 27 Years.<br />On August 4, the Bank of England raised <br />interest rates by half a percentage point.<br />'The New York Times' reports that it <br />was the largest increase since 1995.<br />The move comes as policymakers attempt <br />to combat inflation while also warning Britain <br />that a long recession is forecast for later this year.<br />The bank predicted that the annual rate <br />of inflation would rise above 13% when <br />household energy costs climb higher in October.<br />If that increase comes to pass, <br />it would be the highest level <br />of inflation in over forty years.<br />The bank attributes much of the surge <br />in prices to the global energy market.<br />The price of wholesale <br />natural gas has nearly doubled<br />in the past three months. .<br />Meanwhile, incomes adjusted <br />for inflation and taxes are predicted <br />to drop sharply in 2022 and 2023.<br />It would mark the worst decline <br />since the 1960s.<br />In June, consumer prices rose 9.4%, <br />faster than inflation in the United States<br />and the European Union.<br />According to the bank, these factors are forecast <br />to combine and bring about a recession in the last <br />quarter of 2022 that will last through the end of 2023
