Interest rates rise as UK faces another recession

<p>The UK is once again facing a recession, <a href="standard.co.uk/business/bank-of-england-recession-2023-hikes-interest-rates-mortgages-b1016654.html" rel="noopener noreferrer" target="_blank">as the Bank of England announced its predictions for the economy, alongside a 0.5% rise in interest rates</a>.</p><br><p>It’s the highest for 27 years, and the Bank of England has also predicted&nbsp; energy bills will push inflation to 13% - up from an already 40-year-high of 9.4%.</p><br><p>The Bank has predicted the UK will go into recession in the fourth quarter of this year, which could last into 2024.</p><br><p>Alongside that, the energy regulator Ofgem warned that customers face a “very challenging winter ahead” as <a href="https://twitter.com/ofgem/status/1555099644195213313?s=20&amp;t=CtbFnd3b158o731PKAv5oA" rel="noopener noreferrer" target="_blank">it now plans to update the energy price cap quarterly instead of every six months</a>.</p><br><p>We speak with Economist Lukasz Krebel from the <a href="https://neweconomics.org/" rel="noopener noreferrer" target="_blank">New Economics Foundation</a> about the significance of this latest forecast from the Bank of England.</p><br><p>Plus we speak with <a href="https://twitter.com/graceblakeley" rel="noopener noreferrer" target="_blank">Grace Blakeley</a>, Economist and Columnist for The Tribune about the effectiveness of the interest rate rise.</p><br><p><a href="https://twitter.com/EveningStandard" rel="noopener noreferrer" target="_blank">Follow us on Twitter</a> for more news @EveningStandard </p><br><p><br></p><br /><hr><p style='color:grey; font-size:0.75em;'> Hosted on Acast. See <a style='color:grey;' target='_blank' rel='noopener noreferrer' href='https://acast.com/privacy'>acast.com/privacy</a> for more information.</p>