The Bank of England has warned that the UK will fall into recession this year as it raised interest rates from 1.25% 1.75% in a bid to curb soaring prices.
It expects the economy to shrink in the final three months of this year and keep shrinking until the end of 2023.
This would make it the longest downturn since the 2008 financial crisis.
It blamed the downturn largely on rising gas prices following Russia’s invasion of Ukraine, warning a typical energy bill will hit £3,500 in October. This is three times what the Bank forecast a year ago.
It expects this sharp rise in energy bills to drive inflation, the rate at which prices grow, to 13%.
Source: BBC
