According to reports, the Bank of England increased UK interest rates by 0.5 percentage points to 2.25% in an effort to tackle spiralling inflation amid the cost of living situation.
The Bank Rate has now been increased seven times in a row, but the increase was less than many investors had anticipated, The Guardian said.
The monetary policy committee of the Bank’s decision raises interest rates to their highest level since 2008.
The Bank of England worries that the United Kingdom is already in a recession, in part as a result of the bank holiday to commemorate Queen Elizabeth II’s funeral.
Bank employees revised their growth projections downward and now anticipate that the third quarter’s GDP will contract by 0.1%.
That would follow the 0.1% decline observed in April-June, making it the second consecutive quarterly contraction.
A month prior, the Bank had expected the GDP would expand by 0.4% from July-September.
However, July’s below-expected growth of just 0.2% and the recent bank holiday for the state burial have forced it to lower its projections.
Meanwhile, big tech is preparing for an uncertain future and an impending economic recession. The big tech companies, the majority of which report quarterly earnings next week, have recently given signs that they are hunkering down. It is already usual to hear of layoffs and a halt in hiring in Silicon Valley. Startups claim that capital is drying up. Workers are being put on notice that businesses are changing.