Bank of England implies UK already in recession

The Bank of England has implied that Britain is already in recession. This follows the bank hiking interest rates by 0.5 per cent, which is said to be the biggest hike since 2008.

The Independent is reporting that the bank’s forecast of 0.1 per cent drop in GDP indicates the UK is already in recession.

The Bank’s base rate is now 2.25 per cent, and it is the seventh increment in a row.

The decision to hike rates is an effort by the Bank to bid to tackle inflation – or rising prices.

The Bank of England predicted inflation could peak at 11 per cent. Officials on the monetary policy committee said prices would rise by less than expected in August and then peak in October.