The Bank of England in the City of London increased its interest rate again to combat decades-high inflation but warned the UK economy was slipping into recession. Photograph: Isabel Infantes/AFP

European shares slumped 1.8 per cent on Thursday, as recession worries heightened after the US Federal Reserve delivered another jumbo-sized interest rate hike.

European markets drop 1.8% as investors digest string of interest rate hikes comes via ChinaTechNews.com.