Brits face further hike in key rate by central bank

The Bank of England rolled out its biggest interest rate increase in three decades yesterday, saying the move was needed to beat back stubbornly high inflation that is eroding living standards and is likely to trigger a ‘‘prolonged’’ recession. The central bank boosted its key rate by three-quarters of a percentage point, to 3%, as Russia’s invasion of Ukraine has driven up food and energy costs, pushing consumer price inflation to 40-year highs. The aggressive step was expected after a more cautious half-point increase six weeks ago and matches the recent moves by the US Federal Reserve and the European Central Bank. While higher interest rates will boost the cost of mortgages and credit card debt for already-stretched consumers, the move was necessary to control inflation.