Press TV, London
Britain is on the brink of a recession as deep as the 1990s and as long as the 2008 financial crisis: a bleak projection by the country’s central bank.
The Bank of England says it’s trying to stem skyrocketing prices by raising interest rates by half a point to 1.75 percent saying the measure couldn’t come soon enough. It was news that sent a chill among the public; people already feeling the squeeze on their finances.
The Bank of England predicts the economy is going to shrink with recession starting this year and lasting all the way through the next. That, plus the biggest decline in living standards on record and another sharp rise in household energy bills.
The Bank pins the eye-watering energy price hike largely on rising gas prices owing to the war in Ukraine. But there are other reasons.
The writing had already been on the wall. Many experts did warn the UK was behind the curve in dealing with rising inflation.
Britons are going to see their energy, fuel, and food bills increase significantly over the next year. Charities are warning of a catastrophe this winter. There’s talk of creating ‘warm spaces’ to provide heated sites for those unable to afford their energy bills.
This deluge of bad economic news comes as the country awaits a new prime minister. That is still a month away. And whoever they maybe, their job has just become way harder.