The Bank of England announced that it has raised interest rates to 1.75 percent, the highest level since 2008.

According to the central financial institution, this change has been made to cope with the rising cost of living, despite concerns that the economy is heading for a recession.

The Bank's Monetary Policy Committee (MPC) has raised the cost of borrowing since December in response to rising inflation rates, exacerbated by Russia's military invasion of Ukraine, which has driven the cost of gas to record highs.

Inflation for the month of June rose to 9.4 percent, and is forecast to reach 13 percent when energy bills are expected to remain very high through most of 2023.

financial crisis in 2008/9 and comparable in depth to the one we lived through in 1990/91.

But even when the recession ends, the Bank warns that economic growth is likely to be weak.

It's not clear when GDP is expected to return to its pre-recession level.

— Joel Hills (@ITVJoel) August 4, 2022

According to a report presented by the Joseph Rowntree Foundation, about two-thirds of all low-income households are left without basic necessities, such as heating or hot water.

A looming recession could make matters worse, bringing a wave of job losses.

Fears of an economic slowdown intensified in June when the Organization for Economic Co-operation and Development said it expected the British economy to stagnate from next year.