Bank of England warns of longest recession in 100 years as it raises rates to 3%

UK economy faces very challenging outlook' with recession now expected to last until middle of 2024

• Analysis: Bank signals rates probably won't go much higher
• How will the UK interest rate hike affect you?

The Bank of England has warned the UK risked being plunged into the longest recession in 100 years after it pushed up the cost of borrowing to 3% in the biggest single interest rate rise since 1989.

A 0.75% increase, the latest in a series of eight interest rate rises since last year, would not be enough to guarantee victory in the war against double-digit inflation, the Bank said, as it cautioned further action would be needed.