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5th August 2022, 13:24

Interest rates go up by 0.5% - largest rise in 27 years

The Bank of England has warned the UK will be plunged into recession this autumn, as it raised interest rates by 0.5%, the biggest single hike in 27 years.

The bank's base rate has increased from 1.25% to 1.75% in a bid to curb inflation, which is expected to peak at 13% in October - the highest on record since 1980.

The recession is expected to last for more than the year causing more misery for UK consumers, businesses and home owners.

Jonathan Sacramento spoke to Gerald Rodriguez from the Gibraltar International Bank to find out whether the rise is likely to impact people on the Rock.