Britain braces for TWO years of pain: BofE warns 'longest recession in a century' will last until mid-2024 as it raises interest rates to 3% - the largest rise in decades - and Chancellor admits it is 'very tough' news for families

The Bank of England hiked the rate by 0.75 percentage points to 3 per cent at lunchtime, potentially adding hundreds of pounds to unfixed monthly mortgage payments. Interest rates are now the highest they have been since the Global Financial Crisis in 2008. The increase, which followed a similar announcement by the US Federal Reserve last night, is the largest daily move since Black Wednesday in 1992 and the largest sustained increase since 1989. Central bankers want to get a grip on runaway inflation which is battering British households. And in more bad news for hard-pressed Britons, there are suggestions that the rate could increase further if prices do not stop rising so quickly.