Bank of England warns of recession as inflation rises.

The Bank of England has issued a warning of inflation, and increased interest rates due to rising prices.

The British Central Bank  has raised the interest rate to the highest level since 2009, and in doing so has sent the value of the British Pound (GBP) to its lowest price in almost two years. 

The price of the British Pound dropped to more than a cent against the U.S. Dollar to $1.24, its lowest level since the high point of the Coronavirus  pandemic of mid 2020. 

The rates rose from 0.75% to 1%, the highest levels since 2009, and would be the fourth increase since December. Inflation is at a 30 year high, and is set to hit 10% by autumn.

Following the rise in interest rates, over two million homeowners have seen an immediate increase in their monthly bills. Mortgages, and other costs of living have risen to levels not seen in decades.

The Central Bank has stated that they expect the UK economy to lessen, instead of an increase during the final three months of the year. It is also expected to rise to only 0.25%, rather than the original expectant of 1.25% growth.