Longest recession warning in 100 years for this country, know what will be its effect
carona After this, the threat of recession is looming large on many countries of the world. Now the Bank of England has said about Britain that it is going to have the longest recession in 100 years. According to the bank, the recession that began this summer is expected to last through the middle of 2024. The bank said it expects unemployment to rise from 3.5 percent to 6.5 percent.
interest rate change
Meanwhile, the central bank had provided some relief to the borrowers against expectations by changing the rates. Britain has warned of the longest recession in 100 years after the Bank of England raised the borrowing rate to 3 per cent since 1989. The Guardian reported that the UK economy is going through a very challenging period. Bank Governor Andrew Bailey said, “We can’t make promises about future interest rates, but based on where we stand today, we think the bank rate will need to be lowered from the current price in the financial markets.” The last time borrowing rates increased by more than 0.5 percent was in 1989, according to a Guardian report. During the exchange rate mechanism crisis in 1992, John Major’s government was forced to increase to 2 percent, although it was withdrawn in less than 24 hours.
Interest rates highest in 30 years
Earlier, the Bank of England on Thursday raised its prime lending rate by 0.75 percent to three percent, the biggest increase in the last 30 years. The hike was aimed at curbing uncontrollable inflation caused by Russia’s invasion of Ukraine and reducing the impact of former prime minister Liz Truss’s disastrous economic policies. Inflation based on consumer prices in the UK reached a 40-year high in September. The hike in interest rates is in line with market expectations, as it was believed that aggressive measures were needed to control inflation.
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