UK economy shrinks in July, reviving recession ris

Aihucha News, September 13: The British economy shrank at the fastest rate in seven months in July. Strikes and wet and cold weather had a greater impact on economic activity than expected, once again raising concerns that the economy may slip into recession. Data shows the British economy is losing momentum amid a sharp rise in borrowing costs. The Bank of England expects the economy to stagnate for much of the next two years. That could give some Bank of England policymakers pause to consider whether to raise interest rates again to curb inflation when they meet later this month. Sterling fell after the report, hitting its lowest level against the dollar since June 8. Money markets expect the central bank to raise interest rates by 25 basis points to 5.5%, with further hikes possible before the end of the year. However, Bank of England Governor Bailey previously hinted that the most aggressive interest rate hike cycle since the 1980s is nearing its end.