The Bank of England sounded the alarm over a recession on Thursday as it raised interest rates to curb inflation amid a spiralling cost of living crisis.
Interest rates rose to 1% as it warned the economy will go into reverse and that inflation will peak at more than 10% - its highest level in 40 years - as the Ukraine war compounds a crippling cost-of-living crisis.
In a bleak set of forecasts, the Bank predicted that growth will contract in the final three months of 2022 as the cost squeeze sees households rein in their spending. Inflation was at 7% in March. April's figures, forecast to be 8%, are yet to be released.
