BOE Set to Tip UK Into Recession by Year End, Economists Say
- Bloomberg Economics says slump is price of defeating inflation
- Downturn could be worse if rates rise as high as traders think
The BOE faces the possibility of having to reinstate its recession call.
Photographer: Jose Sarmento Matos/BloombergThis article is for subscribers only.
The Bank of England will push the UK into recession by the end of the year in its battle to curb the worst inflation of any Group of Seven economy, according to Bloomberg Economics.
In an analysis published Tuesday, economists Dan Hanson and Ana Andrade say a shallow if protracted downturn is the price of taming an inflation rate that remains stubbornly close to double digits — despite 13 straight interest-rate increases since the end of 2021.