- The UK is facing a recession that will last at least one year, the Bank of England warned on Thursday after increasing interest rates to 3% from 2.25%, the biggest jump since 1989.
- In the wake of the mini-budget, which prompted a run on the pound and UK gilts, and led to the demise of Truss’s premiership after six weeks, the Bank had indicated that interest rates could hit 6% in 2023.
- Rishi Sunak’s government is expected to unveil its own budget plans, including tax rises and spending cuts, on 17 November, and has warned that the UK will face several years of budgetary austerity.
Bank of England issues bleak warning of recession
