UK ‘in recession’ as Bank of England hikes interest rates to highest since 2008

The Bank of England has announced it will hike interest rates to their highest in more than 13 years and indicated it believes the economy is already in recession. The central bank had previously projected the economy would grow in the current financial quarter but said it now believes Gross Domestic Product (GDP) will fall 0.1%. It comes after a reported 0.2% fall in GDP in the second quarter and would mean the economy is currently in recession. A technical recession is when the economy shrinks for two quarters in a row. Chris Beauchamp, Chief Market Analyst at IG, gives insight into the latest rise in interest rates and what it means for the public.