Households across Kent are facing even more financial pain after the Bank of England hiked interest rates to 3%.

The 0.75 percentage point increase from 2.25% - the biggest single rise for 33 years - takes rates to their highest level since the financial crisis of 2008.

It will further increase mortgage costs for those on variable deals or due to remortgage in the coming months, increasing strain on household budgets amid an ongoing cost of living crisis.

Those looking to secure a new mortgage deal when their current term ends could see their annual housing costs leap by an average of around £3,000.

Unemployment is also set to increase, potentially doubling, with the Bank forecasting the country to enter the longest recession since records began.

Today's decision by the Monetary Policy Committee to raise interest rates was widely trailed, and is explained by the Bank as a response to ongoing high levels of inflation, particularly in the price of energy and food.

In September prices had risen by 10.1% compared to a year ago, well above the 2% level which the Bank of England is required to target in its policy-making.

"High energy, food and other bills are hitting people hard," the Bank said in today Monetary Policy Report.

"If high inflation continues, it will hurt everybody. Low and stable inflation helps people plan for the future. Raising interest rates is the best way we have to bring inflation down.

"We know that many people are facing higher borrowing costs. In particular, many households face higher mortgage rates. And some businesses face higher loan rates.

"It's our job to make sure that inflation returns to our 2% target."

The Old Lady of Threadneedle Street predicts inflation will begin to fall sharply from the middle of next year, as an economic downturn reduces demand for goods and services.

Chancellor Jeremy Hunt said the Government would focus on tackling the UK's battered public finances to help limit the need for further big rate rises, but warned there were "no easy options".

He said: "The most important thing the British government can do right now is to restore stability, sort out our public finances, and get debt falling so that interest rate rises are kept as low as possible.

"However, there are no easy options and we will need to take difficult decisions on tax and spending to get there."