Bank of England official warns about long recession with high rates

Bank of England representative Swati Dhingra declared that the growing interest rates can provoke a severe and long recession. 

Her colleagues supported the increase in rate from 0.75% to 3% last month. Dhingra, unlike the others, voted for a 0.5% increase. Then, she said that the central bank would exacerbate the recession if it raised borrowing costs again.

According to the official, now there is a longstanding and strong recession with high rates. If the tightening continues, the situation can worsen.

Also, Dhingra added that an economic decline has already begun. The level of fall can be quite serious for the British economy. 

Those who expect a new increase in interest rates don’t consider the Bank of England polls. According to these polls, the level of employment and investment will decrease in the next two years.