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Podcast: Beyond Currency
Episode: 4 November 2022 - UK facing longest-ever recession
Description: The Bank of England hiked short-term interest rates by seventy-five basis points as it continues to battle inflation.
In his press conference following the announcement, Andrew Bailey spoke of the UK facing the prospect of its longest recession in history. While it won’t rival the recession caused by the Pandemic for depth, it will continue well into 2024.
Following its biggest hike since 1989, the eventual high may reach 5.25%. Bailey believes that rising inflation will moderate quite soon and begin to fall in the second quarter of 2023.
Meanwhile, the country faces the prospect of a significant economic contraction, with unemployment doubling fr...