UK in ‘prolonged recession’, Bank of England warns, as it hikes interest rates to 3% – business live

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, as household incomes were squeezed by higher global energy and goods prices.

Alarmingly, it predicts that this downturn will last until mid-2024.

GDP will keep falling throughout 2023 and even in the first half of 2024, the Bank…