Bank of England warns it cannot stop UK falling into recession

7 comments
  1. “The Bank of England has warned that little can be done to stop the UK falling into a recession as the war in Ukraine continues.
    Governor Andrew Bailey said it would “overwhelmingly be caused by the actions of Russia and the impact on energy prices”.
    **It expects the economy to shrink in the last three months of 2022 and keep shrinking until the end of 2023**.
    The warning comes ahead of a plan limiting a sharp rise in energy bills.
    It is understood that a typical energy bill could be capped at around £2,500, with full details expected on Thursday.
    Currently, **a typical household’s gas and electricity bill is due to rise from £1,971 to £3,549 in October.**
    Speaking in front of the Treasury select committee on Wednesday, **Mr Bailey said “sadly”a recession remained the most likely outcome in the UK.**
    When asked by MPs **if there was much that the central bank could do to stop it, he said: “Insofar as the war is having this huge effect, the answer to that would be no.”**
    The Bank predicted a **UK recession last month as it raised interest rates by the most in 27 years in a bid to keep soaring prices under control.**
    **Higher interest rates can make borrowing more expensive**, meaning **people have less money to spend and prices will stop rising as quickly**. But there is a limit as to how effective UK interest rate rises can be in slowing inflation when it is caused by global issues.”

    Hard Times incoming…

  2. That just means the sanctions are working.

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    Minor hunger during cold winter without heating in Britain is not a big problem.

    Just work more and eat less.

  3. Probably, but I don’t think many countries will avoid it either. We have the added stupidity of Brexit, but the truth is these issues are plaguing every major economy in the west

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