BoE goes big, but warns of deep recession

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2y ago 17:15

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According to the BoE, further increases in interest rates may be required to bring inflation back down to target, but the bank stated that the peak in rates would be '‘lower than priced into financial markets''.

On the UK economy, the BoE once again struck a sombre note. In its statement, the MPC spoke of a ‘very challenging’ outlook for the UK economy, mentioning the tightening in financial conditions since August. The committee also warned that the economy may already be in recession, and that this could last until the middle of 2024, which would be the longest recession since records began.

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