Last week, 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 last 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 pre-pandemic Q2 2019...