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

4th August 2022
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
The Monetary Policy Committee voted by a majority of 8-1 to increase #BankRate to 1.75%. Find out more in our #MonetaryPolicyReport: https://t.co/389XbdQZWf pic.twitter.com/OcqtaWjFuX
— Bank of England (@bankofengland) August 4, 2022
Bank of England serves up a shock with its intensely gloomy outlook https://t.co/CujjYsXhWj
— FT Economics (@fteconomics) August 4, 2022
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