The Bank of England has hiked interest rates to one per cent and issued a dire warning that the UK will be on the verge of a recession later this year.
In the grim set of forecasts the Bank predicted that the economy will go into reverse and that inflation will peak at more than 10 per cent, adding to the cost of living crisis many are already feeling.
The effects of the Ukraine war and the crippling rise in energy prices are cited as factors that will push the economy into negative growth.
