If the UK economy soon slips into recession, we will likely gesture vaguely at summer – such as it was – for when the contraction began. GDP shrank by 0.5 per cent in July, the sharpest decline since December, with services, production and construction all shrinking.
To a large extent, this is the medicine working. The Bank of England has raised interest rates 14 consecutive times, from a historical low of 0.1 per cent in December 2021 to 5.25 per cent today – all in the name of price stability and returning to the 2 per cent inflation target.
