let s just touch on what the bank of england is forecasting for the uk economy this year. it says britain remains set for recession, but a much shallower one than previously feared. it sees the economy shrinking by 0.5% in 2023 as energy bills fall and price rises slow. that compares with the 1.5% contraction forecast in november. here s our economics correspondent andy verity on that. some critics might say, well, why are you raising interest rates, which makes life harderfor a lot of households and gives them less money to spend when we re already headed for recession? the answer to that is that they are worried that inflationary pressure, which had been imported so far from gas prices and the like is becoming embedded domestically, in, for example, the price of services, which has gone up by more than they expected. so they are worried that wage rises are reflecting expectations that inflation will stay high and that could become a bit of of a self fulfilling prophecy. in an
misjudged decisions by the conservative party just last year. let s just touch on what the bank of england is forecasting for the uk economy this year. it says britain remains set for recession, but a much shallower one than previously feared. it sees the economy shrinking by 0.5% in 2023, as energy bills fall and price rises slow. that compares with the 1.5% contraction forecast in november. in an interview with the bbc, andrew bailey admitted that it s some critics might say, well, why are you raising interest rates, which makes life harderfor a lot of households and gives them less money to spend when we re already headed for recession? the answer to that is that they are worried that inflationary pressure, which had been imported so far from gas prices and the like is becoming embedded domestically, in, for example, the price of services, which has gone up by more than they expected.
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