Bank of England predicts recession as it enacts largest rate hike in 27 years

Elliot Gulliver-Needham
clock • 2 min read

The Bank of England has raised interest rates by 0.5%, its largest hike since 1995, as it forecast a recession in the UK by the end of this year. The bank's Monetary Policy Committee voted 8-1 to raise rates to 1.75%, with only Silvana Tenreyro voting for a smaller 0.25% rise. These updated forecasts now see the UK falling into recession in the fourth quarter of 2022, as GDP growth continues to slow. The economy would then keep contracting throughout next year, with GDP falling by about 2.1%. "Real household post-tax income is projected to fall sharply in 2022 and 2023, while consu...

To continue reading this article...

Join International Investment

Join International Investment today

Unlock members-only benefits:

  • Unlimited access to real-time news, industry insights, video features and market intelligence
  • Stay ahead of the curve with spotlights on international financial centres, regional trends international advice and global industry leaders
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Hear the latest cross jurisdictional developments in wealth planning, tax, regulation, investing, retirement and protection
  • Members-only access to the Editor’s weekly news roundup newsletter
  • Members-only access to analysis via our exclusive industry polls
  • Be the first to hear about our events and awards programmes

Join now


Already a International Investment member?