UK already in recession, warns Bank of England newshub

UK already in recession, warns Bank of England

The UK is already in recession, the Bank of England warns, and it could be a prolonged one too.

The Bank estimates that the UK entered recession in the third quarter of this year and that this downturn will last until mid-2024.

It warns:
The MPC’s latest projections described a very challenging outlook for the UK economy. It was expected to be in recession for a prolonged period and CPI inflation would remain elevated at over 10% in the near term.

Unemployment is expected to rise too, with the jobless rate seen hitting almost 6.5% by late 2025 – up from just 3.5% at present.

The Bank projects a long, shallow recession, with slower recovery than the 80s or 90s. And a sharp rise in unemployment, though that seems pessimistic compared to other forecasters. More likely to see small rise in u/e & prolonged cost of living squeeze? https://t.co/JDi6R8DaTB pic.twitter.com/z5f3gZcWQ9
— Stephen Evans (@Stephen_EvansUK) November 3, 2022

NEW: Bank of England increases interest rates by 0.75pp to 3 per cent, the biggest hike for more than three decades

BoE warns UK already in recession, and it could be a longest since records began as it forecasts a “very challenging outlook” https://t.co/884jL5X67e
— Beth Rigby (@BethRigby) November 3, 2022