Bank of England raises interest rates and now forecasts a recession in 2023

The Bank of England has raised interest rates and at the same time is now forecasting a recession for the UK economy.

The Bank of England has raised monetary policy interest rates by 0.5% to 1.75%

This is the biggest single monthly rise in 27 years

The Bank predicts a peak in consumer price inflation of 13%

Real disposable incomes are set to fall sharply causing a fall in consumer spending

When real incomes fall, people’s spending power drops

And millions have very little savings to fall back on

Bank now forecasts an economic recession for the UK lasting perhaps as long as happened during the global financial crisis (5 quarters), and as deep as during the early 1990s