Andrew Bailey during the Bank of England’s financial stability report press conference (Yui Mok/PA)
(Picture: PA Wire)The UK is once again facing a recession, as the Bank of England announced its predictions for the economy, alongside a 0.5% rise in interest rates.
It’s the highest for 27 years, and the Bank of England has also predicted energy bills will push inflation to 13% - up from an already 40-year-high of 9.4%.
The Bank has predicted the UK will go into recession in the fourth quarter of this year, which could last into 2024.
Alongside that, the energy regulator Ofgem warned that customers face a “very challenging winter ahead” as it now plans to update the energy price cap quarterly instead of every six months.
We speak with Economist Lukasz Krebel from the New Economics Foundation about the significance of this latest forecast from the Bank of England.
Plus we speak with Grace Blakeley, Economist and Columnist for The Tribune about the effectiveness of the interest rate rise.
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