Bank of England Warns The Country Is Already In A Recession, And It Is Facing Its Longest Recession Since Records Began

Daily Mail: Britain braces for TWO years of pain: BofE warns 'longest recession in a century' will last until mid-2024 as it raises interest rates to 3% - the largest rise in decades - and Chancellor admits it is 'very tough' news for families with mortgages 

* The Bank of England hiked the interest rate by 0.75 percentage points to 3 per cent at lunchtime 

* Potentially adds hundreds of pounds to unfixed monthly mortgage payments for homeowners 

* Interest rates are now the highest they have been since the Global Financial Crisis in 2008 

* It's the biggest daily move since Black Wednesday in 1992 and the largest sustained increase since 1989 

* Bank governor Andrew Bailey warned of a 'tough road ahead' for the UK economy in the coming years 

* He told reporters today: 'If we do not act forcefully now it will be worse later on.' 

Britain was told to brace itself for two years of economic pain today as the Bank of England introduced the largest interest rate rise in three decades. 

The Bank of England hiked the rate from 2.25 per cent to 3 per cent to tackle soaring inflation in a move that added thousands of pounds to annual unfixed mortgage bills at a stroke. 

But alongside the measure was a warning that the UK is already in a recession and would probably continue to experience economic contraction until the middle of 2024.  

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WNU Editor: The Bank of England just said the "R" word (i.e. recession). And yes, U.K. interest rates are certainly going to rise again .... Bank of England signals interest rates probably won’t go much higher (The Guardian). 

As to what is my take. 

I think the Bank of England is too optimistic. I think they are underestimating the impact that high personal/corporate/government debt levels are having. I think they are also underestimating the impact that the energy crisis is having, and the impending food crisis that many countries will be facing in 2023 when everyone starts to realize that farmers cannot grow crops at sky-high diesel and fertilizer prices. 

Inflation, high unemployment, no GDP growth, higher interest rates, high debt levels, higher taxes, and a further breakdown in supply chains. It is going to get as grim as it can.

I also think this recession is not going to be only limited to the UK. I personally think it is going to be global. And there is a very scary chance that this may turn into a depression for some countries.

 Bank of England Warns The Country Is Facing Its Longest Recession Since Records Began  

Live: Interest rate rises to 3% - the biggest hike in decades -- BBC  

UK in ‘prolonged recession’, Bank of England warns, as it hikes interest rates to 3% – business: Live -- The Guardian 

Bank of England expects UK to fall into longest ever recession -- BBC  

Bank of England warns of longest recession since the 1930s -- The Guardian  

UK faces longest recession since records began, Bank of England says -- CNBC 

Bank of England hikes rates by biggest increase in 30 years -- DW  

What the 0.75% interest rate hike means for your mortgage and savings: Bank of England ups base rate to 3% - the biggest rise for more than 30 years -- Daily Mail