Bank of England warns of longest recession since the 1930s

Interest rate rise to 3% is biggest since 1989 and fears UK economy may go into longer, deeper recession

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The Bank of England has increased the cost of borrowing by 0.75 percentage points to 3%, despite predicting that higher interest rates would push the economy into the longest recession since the 1930s.

In a split vote, the central bank's monetary policy committee (MPC) voted by a 7-2 majority for the biggest increase in rates since 1989 to combat an inflation rate that hit 10.1% in September.