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Interest rates soars to 13-year high as Bank of England warns energy bills will soon hit £2,800

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The Bank of England has issued a dire warning for millions across the UK after hiking interest rates to its highest levels for over a decade.

Today, the Bank announced that interest rates would be rising from 0.7% to a 13-year high of 1% as it warned the UK economy is set to go into reverse.

Members of the Bank’s nine-strong Monetary Policy Committee voted 6-3 to increase rates from 0.75% to 1% - with some of its rate-setters even voting for a rise to 1.25% amid fears over rocketing inflation, reports The Mirror.

Following that, the Bank revealed in a set of grim forecasts that Consumer Prices Index (CPI) inflation will rise from 7% currently to over 10% this year.

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