Richardcyoung.com

  • Home
  • Debbie Young
  • Jimmy Buffett
  • Key West
  • Your Survival Guy
  • How We Are Different
  • Paris
  • About Us
    • Foundation Principles
    • Contributors
  • Investing
    • You’ve Read The Last Issue of Intelligence Report, Now What?
  • The Swiss Way
  • My Rifles
  • Dividends and Compounding
  • Your Security
  • Dick Young
  • Dick’s R&B Top 100
  • Liberty & Freedom Map
  • Bank Credit & Money
  • Your Survival Guy’s Super States
  • NNT & Cholesterol
  • Your Health
  • Ron Paul
  • US Treasury Yield Curve: My Favorite Investor Tool
  • Anti-Gun Control
  • Anti-Digital Currency
  • Joel Salatin & Alfie Oakes
  • World Gold Mine Production
  • Fidelity & Wellington Since 1971
  • Hillsdale College
  • Babson College
  • Contact Us

Bank of England Signals Recession, Raises Rates

November 3, 2022 By Richard C. Young

By A Kisel @ Shutterstock.com

The Bank of England decided today to raise rates the most since 1989, matching the Federal Reserve’s rate increase of 75 basis points. At the same time, the UK’s central bank signaled that the country’s economy is probably in recession. The Wall Street Journal’s Paul Hannon reports:

The Bank of England raised its key interest rate by 0.75 percentage point on Thursday, its largest rise since 1989, as it fights a surge in inflation from rising energy prices even as the U.K. economy slides into an expected recession.

The central bank raised its benchmark lending rate for the eighth consecutive meeting to 3% from 2.25%, taking it to the highest level since November 2008. Higher borrowing costs will hurt an already weak economy as consumers brace for a difficult winter of falling real incomes and rising prices.

The BOE said the U.K. economy likely entered a recession in the three months through September, when output fell an estimated 0.5%. It said its Monetary Policy Committee expects a long-lasting recession, the length and depth of which depended on how high the bank raises rates to corral prices.

“The MPC’s latest projections describe a very challenging outlook for the U.K. economy,” the BOE said in a statement. “It is expected to be in recession for a prolonged period.”

The bank said U.K. financial markets were currently pricing in a path for its key rate that would peak at 5.25% late next year, a level which it forecast would cause the U.K. economy to contract 1.5% next year and a further 1% in 2024, causing unemployment to rise to 6.5% by the end of 2025.

But it signaled that it doesn’t expect to end up raising rates as much as investors anticipate. “Further increases in Bank Rate may be required for a sustainable return of inflation to target, albeit to a peak lower than priced into financial markets,” it said.

Still, even if the bank keeps its current rate of 3%, the U.K. economy is likely to endure a recession until the last quarter of next year, it said.

If you’re willing to fight for Main Street America, click here to sign up for my free weekly email.

Related Posts

  • Forecasting Recession
  • Former New England Patriot Retires
  • Recession or No Recession?
  • Record Low Rates
  • Author
  • Recent Posts
Richard C. Young
Richard C. Young
Richard C. Young is the editor of Young's World Money Forecast, and a contributing editor to both Richardcyoung.com and Youngresearch.com.
Richard C. Young
Latest posts by Richard C. Young (see all)
  • Most Secure Border in History - July 3, 2025
  • Can Peace Hold with a Defiant Iran? - July 3, 2025
  • Democrats Aiming for Self Destruction? - July 2, 2025

Dick Young’s Must Reads

  • SVB – There’s Panic in the Air
  • “An Epic Struggle Over the Definition of America”
  • Conflict Between Democratic Sovereignty and Transnational Progressivism (Globalism)
  • Why Some Kids Won’t Go Back to School, Ever
  • V4 Stands Against North African and Middle Eastern Invasion
  • Your Cash Swept into Your Broker’s Bank Account!
  • The Fed – “Independent” and “Non Political” – Joins The Resistance
  • Rich States, Poor States this State is Dominant Once Again
  • America’s Colleges Have Become Progressive Liberal Rat Holes
  • Americans Fleeing High Tax States for Growth Corridors

Our Most Popular Posts

  • Just Don’t Call It “Obliterated”
  • A True America First Foreign Policy
  • What Is Tim Walz's Connection to China?
  • "Surrounded by an Armed Country"
  • NYC's Mamdani: The More You Know, the Worse It Gets
  • China’s Silent Strike: Weapon Targets Electrical Infrastructure
  • The Ugliness of Political Warfare
  • Naturalized Criminals Set to Lose American Citizenship
  • Survive and Thrive June 2025: The Lay of the Land: Who Can You Trust?
  • Money for Nothing

Compensation was paid to utilize rankings. Click here to read full disclosure.

RSS Youngresearch.com

  • Survival Guy: An All-Weather Balanced Portfolio
  • A Bazooka Fired at Private Equity
  • US Trade Deficit Widens in May
  • Job Gains Light Up the Labor Market
  • U.S. Eases Chip Software Restrictions, Boosting Tech Trade with China
  • NYC, Crypto, ESG, the Haves and the Have-Yachts
  • Trump Announces Vietnam Trade Deal
  • Nuclear Surpasses Coal in U.S. Energy Mix for the First Time
  • Grand Theft Cargo: California’s Cargo Thefts Thrive
  • Every 50 Minutes: The Alarming Pace of Cargo Theft in Mexico

RSS Yoursurvivalguy.com

  • Survival Guy: An All-Weather Balanced Portfolio
  • A Bazooka Fired at Private Equity
  • NYC, Crypto, ESG, the Haves and the Have-Yachts
  • “Behind Every Blade of Grass”
  • Beware the ‘Democratization’ of Investing
  • Survive and Thrive June 2025: The Lay of the Land: Who Can You Trust?
  • Dividends: “Because It Works”
  • “Surrounded by an Armed Country”
  • Every Family Should Own at Least One Shotgun: Here Are Three
  • What’s the Best Gun for Home Defense?

US Treasury Yield Curve: My Favorite Investor Tool

My Key West Garden Office

Your Retirement Life: Traveling the Efficient Frontier

Live a Long Life

Your Survival Guy’s Mt. Rushmore of Investing Legends

“Then One Day the Grandfather was Gone”

Copyright © 2025 | Terms & Conditions | About Us | Dick Young | Archives