Bank says recession could stretch into 2024

The Independent's Morning Headlines email [View online]( November 04, 2022 [Morning Headlines]( 1 / [Britain facing ‘prolonged pain’ as Bank says recession could stretch into 2024]( The Bank of England has said that Britain is facing the longest recession since records began, stretching deep into 2024. [The Bank raised interest rates by 0.75 per cent]( to 3 per cent on Thursday, leaving homeowners with the biggest single shock to their mortgage bills in more than three decades. Poverty campaigners have warned that the country faces a "prolonged period of pain" over the next few years. Money Saving Expert founder Martin Lewis said mortgage holders on variable rates face an additional £480 a year for every £100,000 of their loan. And further increases implied by the Bank’s economic outlook mean that around 5 million households could be paying an average of £3,900 more on their mortgage bills by the end of 2024, according to calculations by the Resolution Foundation think tank.   2 / [Suella Braverman arrives at Manston migrant centre by Chinook helicopter]( A Chinook helicopter reportedly costs £3,500 per hour to fly 3 / [Imran Khan blames Pakistan PM for assassination attempt as his angry supporters protest]( Pakistan’s media regulator has banned channels from airing a video blaming Pakistan’s PM and an ISI official 4 / [Manchester bombing victim ‘would have survived if not for emergency response failings’]( ‘Apology means nothing unless they act rapidly,’ say grieving family, as inquiry head scathing about rescue operation 5 / [South Korea detects huge sortie of 180 North Korean warplanes near border, scrambles fighter jets]( Seoul says it has scrambled around 80 jets in response     The Big Question What does the latest interest rate hike mean for me? The [Bank]( of England said it would hike interest rates by 0.75 percentage points to 3% on Thursday, the biggest single increase since 1989. It means that rates are now at their highest level since December 2008 and the Bank warned that further rises might be required to bring down runaway inflation. But what does the higher rate mean for households? Why has the Bank decided to make borrowing more expensive? The Bank of England has said that the UK’s inflation rate is currently too high, so raising interest rates is the best tool for bringing it down. The UK’s consumer prices index inflation rate reached 10.1% in September, with food prices rising sharply and energy costs spiking since the war in [Ukraine](. It means that many households are seeing their supermarket shop get more expensive, as well as other costs like petrol, clothing, and utility bills. The Bank’s Governor, [Andrew Bailey](, said that he needs to act “forcefully” now, otherwise things will get worse for Britons later on. Interest rates have risen from 0.1% to 3% since December last year, and the Bank said that it is likely it will have to put through further increases in the months ahead. [For the full story click here >](   Watch/ [Jeremy Corbyn says he 'lives rent free' in Rishi Sunak's head](   NUMBER OF THE DAY £3,500 – Home secretary [Suella Braverman]( has arrived at the [Manston]( immigration centre in a Chinook helicopter amid mounting pressure to get a grip on overcrowding at the site. A Chinook helicopter costs £3,500 per hour to fly, according to the UK Defence Journal, and has a top speed of around 188mph according to its manufacturer, Boeing.   QUOTE OF THE DAY “Our actions were substantially inadequate and fell short of what the public have every right to expect, and for this, I apologise unreservedly.” – Chief Constable of [Greater Manchester Police]( Stephen Watson apologised for the response to the [Manchester Arena]( bombing.       Other stories you might like   [Russia claims UK is ‘too deep’ in Ukraine war](   [Boris Johnson had numbers to challenge Rishi Sunak, says top Tory](   [Tesco introduces new 28p car charge at supermarkets across UK](       Articles available exclusively to subscribers [Mary Dejevsky]( The Independent -[A tale of two Borises: What do Boris Johnson and Boris Yeltsin have in common?](   Other newsletters you might like [The Race Report] The Race Report Fortnightly, 7am (UK time) Written by Nadine White [Sign up]( [Inside Politics] Inside Politics Weekdays, 8am (UK time) Written by Matt Mathers [Sign up](   If you can spare a minute we’d love your [feedback]( on our newsletters. 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