Bank of England warns UK may face two-year recession, hikes rate
Londonthukh– Themwankmofmzngb landmannouncedmitsmbiggestminterb estmratemhikemsincemfnmnmto combatmskybhighminflationmthatmit warnedmwasmpushingmwritainminto amrecessionmthatmrisksmlastingmuntil midbgegic
–ollowingmamregularmmeetinga themwozmsaidmitmwasmliftingmborb rowingmcostsmbymecljmpercentage pointsmtomthreempercentm–mthe highestmlevelmsincemthemgeem globalmfinancialmcrisism–mtomcoolmuk inflationmthatmitmseesmshortlympeakb ingmatmamfourbdecademhighmnearmff permcentc
Oitmismamtoughmroadmaheadaomwoz governormvndrewmwaileymtoldma pressmconferencec
Othemsharpmincreaseminmenergy pricesmcausedmbymrussiausminvab sionmofmukrainemhasmmademus poorermasmamnationco
Minutesmofmitsmmeeting warnedmofmamochallengingmoutlook formthemukmeconomyomthatmwas Oexpectedmtombeminmrecessionmfor amprolongedmperiodoamdealingma blowmtomwritainusmtroubledmgovb ernmentc
Themlatestmratemincreasemmirb rorsmaggressivemtighteningmby centralmbanksmworldwidemasmfood pricesmandmenergymbillsmsoarc
Onmwednesdayamthemusm–edb eralmreservemsprangmamfourthmconb
secutivemhikemofmecljmpercentage pointsmbmandmitsmbossmjerome Powellmsuggestedmtheymwouldmgo highermthanmexpectedc
Themwozmsaidmwritishminflation wouldmpeakmatmfecnmpermcentmthis yearambutmwithmthemlevelmsomhigha somemanalystsmsaidmthemcentral bankmratemcouldmstillmhitmaround fivempermcentminmthemcoming monthsc
Suchmamrateamthemwozmsaid Thursdayamcouldmseemthemuk economymsuffermeightmquartersmof contractionminmamrowcmvtmthemsame timeamhoweveramitmcautionedmthat itmdidmnotmexpectmborrowingmcosts tomclimbmasmhighmasmmarketmexb pectationsc
Themwozmsaidmthemeconomy
hadmshrunkmsincemthemthirdmquarb teramenteringmamtechnicalmrecesb sionmthatmismforecastmtomlastmuntil themfirstmhalfmofmgegic
Thempoundmtumbledmtwomper centmagainstmthemdollarmonmexpecb tationsmofmamlongblastingmrecesb sionmandmwozmexpectationsmthat itsmkeymratemmaymnotmrisemmuch furtherc
Ovmtypicalmtextbookmtrademis outmofmthemwindowmbecausemcurb renciesmusuallymmovemhigher whenmamcentralmbankmincreases ratesaomnotedmnaeemmvslama chiefmmarketmanalystmatmvvatradec
Otoughmtimesmaremaheadamand wemaremgoingmtomseemthemeconb omyammarketsamandmthemcurrency tankingminmthemcomingmmonthsco
Londonusm–tszmfeemshares indexmfaredmbetteramrisingmabout halfbabpercentcmhowevermthemsecb ondbtierm–tszmgjeamwhichmismless internationallybfocusedamreb treatedc
Cost-of-living crisis
Themwozmratemincreasemismsetmto worsenmamcostbofblivingmcrisismfor millionsmofmwritonsmasmhikesmby centralmbanksmseemretailmlenders pushmupminterestmratesmonmtheir ownmloansc
Othemcentralmbankmhasmhadmthe unenviablemjobmofmfightingmsoaring inflationmamidmenormousmecob nomicmandmpoliticalmuncertaintyao saidmxraigmzrlamamanalystmatmtradb ingmplatformmovnyvc
Repaymentsmonmukmmortb gagesmhavemsurgedminmrecent weeksmaftermthemdebtbfuelled budgetmofmpreviousmwritishmprime ministermlizmtrussmspookedmmarb ketsamforcingmhermtomresignmand triggeringmemergencymbuyingmof Ukmgovernmentmbondsmbymthe wozc
Hermsuccessormrishimsunakmhas attemptedmtombringmcalmmtommarb ketsmbymhintingmatmtaxmrisesminma freshmbudgetmonmnovembermfla evenmifmsuchmammovemfurther harmsmwritainusmeconomy