Bank of England predicts recession at the end of the year

By DANICA KIRKA
Associated Press

LONDON (AP) — The Bank of England has announced its biggest interest rate increase in 27 years. The central bank forecasts that the war in Ukraine will fuel further inflation and tip the U.K. economy into a prolonged recession. Soaring natural gas prices are likely to drive consumer price inflation to 13.3% in October. That’s up from 9.4% in June. That will push Britain into recession later this year. Central banks worldwide are struggling to balance efforts to control inflation while minimizing the fallout for economies that were just beginning to recover from the coronavirus pandemic.