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UK economy to be in recession for more than a year, Bank of England warns as it hikes rates
SKY News ^ | August 4, 2022 | By Paul Kelso

Posted on 08/04/2022 8:00:26 AM PDT by Oldeconomybuyer

The UK economy will be plunged into recession for more than a year this autumn as rising energy prices push inflation above 13%, the Bank of England has warned.

In a bleak outlook for consumers and business, the bank forecast five quarters of economic contraction and a 5% fall in real-terms living standards, and increased interest rates by 0.5 percentage points, the largest single rise in 27 years.

The bank's baseline forecast is for GDP to fall by 1.25% in 2023 and 0.25% in 2024, the first instance of two years of annual economic contraction since the 1960s.

(Excerpt) Read more at news.sky.com ...


TOPICS: Business/Economy; News/Current Events; Politics/Elections; United Kingdom
KEYWORDS: europe; ratehike; recession; ukeconomy

1 posted on 08/04/2022 8:00:26 AM PDT by Oldeconomybuyer
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To: Oldeconomybuyer

Wonder why they didn’t just re-define the problem away like we do?


2 posted on 08/04/2022 8:07:00 AM PDT by Starboard
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To: Oldeconomybuyer

The UK were well out of The Depression long before WWII while we were still wallowing in it.

How? They made adn executed hard decisions early. They cut spending for one thing.


3 posted on 08/04/2022 8:13:53 AM PDT by Sequoyah101 (Politicians are only marginally good at one thing, being politicians. Otherwise they are fools.)
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To: Sequoyah101

Then they went total socialist after WWII, which is why Churchill came back to power.


4 posted on 08/04/2022 8:15:12 AM PDT by dfwgator (Endut! Hoch Hech!)
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To: Starboard

> Wonder why they didn’t just re-define the problem away like we do? <

Great question. The Bank of England is forecasting five quarters of economic contraction. So just define a recession as six quarters of economic contraction.

It funny how such an advanced country cannot come up with such a simple solution.


5 posted on 08/04/2022 8:25:27 AM PDT by Leaning Right (The steal is real.)
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To: Oldeconomybuyer

bank of england better watch out or they’ll be banned by facebook for “misinformation” ...


6 posted on 08/04/2022 8:31:44 AM PDT by catnipman (In a post-covid world, ALL "science" is now political science: stolen elections have consequences)
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To: Leaning Right

Or label it a ‘technical’ recession.


7 posted on 08/04/2022 8:31:52 AM PDT by Starboard
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To: dfwgator

One of our luckiest breaks was releasing government controls on the economy right after WW2. There was a big push to maintain wartime economic controls after the war ended because they “worked so well”. England still had rationing well into the 1950s


8 posted on 08/04/2022 8:37:28 AM PDT by KarlInOhio (If Hitler invaded Hell, I would make at least a favourable reference of the Devil...-Churchill)
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