UK recession fears mount after Bank of England hikes borrowing rates by more than expected

By PAN PYLAS
Associated Press

LONDON (AP) — Fears that the British economy is heading for recession have mounted sharply after the Bank of England raised borrowing costs by more than anticipated. Thursday’s move to combat stubbornly high inflation will hit borrowers hard, particularly homeowners who have to refinance over the coming months. On a busy day for central bank action in Europe, the Bank of England decided to lift its main interest rate by half a percentage point to a fresh 15-year high. The size of the bank’s 13th hike in a row was somewhat of a surprise, with most economists predicting a smaller quarter-point increase.