After the world faced the Covid-19 pandemic, the world economy keep shrinking. In addition, the invasion of Russia-Ukraine driving a high inflation hike to 13% and low growth is soaring energy bills. The Bank of England has announced that the interest rates rose to 0.50% which reaches 1.75%, this rate is the highest rise in 27 years. After that, the Bank of England warned the UK will get into a recession, the economy will be shrink in the last 3 months of this year and keep shrinking until the end of 2023.
On the next day, after the Bank of England warned that the UK will into recession, it will spend time on 5 quarters (2022 – 2023), the Pound depreciated to 0.25% which reach 1.213 dollars, and depreciation to 0.12% which reach 0.843 euro.
Moreover, the Bank of England forecasted that the level of inflation will hit 13.3% in October 2022, and in 2023 the inflation rate still is high for a whole year, then the inflation rate will decrease by 2% on 2025 as expected.
Published 10/08/2022
By Windy K.
