Bank of England prepares another rate hike despite the recession

On Thursday, the Bank of England raised the interest rate for nine times in a row. Such a step looked foregone. Due to this, the investors will have to find out how many times the bank needs to increase the rate because the economy is under threat of recession, and inflation is still above 10%. 

Last week, Reuters surveyed 54 economists. The majority forecasted growth of the bank rate by 0.5 percentage points and, as a result, a 14-year high of 3.5%.

Data released on Wednesday showed that last month the growth of consumer prices turned out to be less than the Bank of England’s expectation. Business surveys showed a decrease in economic growth. 

However, according to data released on Tuesday, the basic wage grew the most since 2001, excluding the pandemic. This would probably add concerns to some officials who fear that inflation persists.

The Organization for Economic Co-operation and Development informs that the British economy will be the weakest among the G7 countries in 2023.