<
https://theconversation.com/is-the-uk-in-a-recession-how-central-banks-decide-and-why-its-so-hard-to-call-it-191237>
"Last week, UK chancellor Kwasi Kwarteng launched a bid to boost economic
growth with the largest tax cutting exercise for half a century. What this
so-called mini-budget has since overshadowed, however, was an admission by the
Bank of England the previous day that the UK may already be in a recession.
The fact that this statement from the UK central bank has been lost amid news
of a plunging pound and general financial market volatility is no surprise, but
it also speaks to the difficulties in trying to pin down whether or not an
economy has actually entered a recession.
On September 22, five out of the nine members of the Bank of England’s Monetary
Policy Committee (MPC) voted to increase the base rate by 0.5% to 2.25%. This
is the rate banks and lenders pay, which in turn influences the interest rates
people pay for mortgages and savings products.
It is now at the highest level since the 2007-2008 global financial crisis. The
Bank has been steadily working up to this point since its December 2021 meeting
and more hikes are expected as it attempts to bring soaring inflation back
towards its 2% target."
Cheers,
*** Xanni ***
--
mailto:xanni@xanadu.net Andrew Pam
http://xanadu.com.au/ Chief Scientist, Xanadu
https://glasswings.com.au/ Partner, Glass Wings
https://sericyb.com.au/ Manager, Serious Cybernetics
