UK 'in recession' amid Bank of England interest rates hike

The Bank of England has indicated that it believes the economy is already “in recession” amid an interest rate hike to their highest in more than 13 years.

The central bank had previously projected the economy would grow between July and September but said it now believes Gross Domestic Product (GDP) will fall 0.1%.

A rise in interest rates in theory should encourage people to spend less and cool prices, as it is more expensive to borrow, however people with mortgages are likely to see their costs rise.

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