Yesterday, the Bank of England (BoE) lived up to its promise to act “forcefully” to curb surging inflation, by announcing the biggest increase in interest rates in over 25 years (1.25% to 1.75%). The BoE has also warned that Britain will fall into a recession later this year. The interest rate is now at its highest level since 2008, as the bank grapples to control soaring inflation, (currently at 9.4%) which is well above its 2% target and is forecast to pass 13% this year.
The National Institute for Economic and Social Research (NIESR) made a similarly downbeat prediction this week. The NIESR forecast that Britain would now experience a consecutive three quarters of negative growth, with unemployment peaking at 5%.
Company insolvencies are on the rise too, there was an average 30% increase in the number of company insolvencies (across all industry sectors) in Q2 2022, compared to the pre-pandemic Q2 2019...
