The health of the British economy is not fine, and it has begun to occupy mind, to the point that the Central Bank of England launched a strongly worded warning that the country’s sixth economy in the world has begun to face the longest recession since the twenties of the last century, and announced the largest increase in interest rates 3 decades ago, raising it to the highest level in approximately 15 years, or 0. 3% to reduce inflation at 75 degrees Celsius.
As the average family will be 800 pounds, the worst next year, or 900 dollars, it became evident from the analysis of the bank’s expectations, which are the source of the Resolution Foundation’s famed studies, that families have been under the most pressure on their real income since the Second World War. Because inflation that weakens the value of the income will cause a loss of 66 pounds average on average, and the poorest of 10 % of families is more affected because it spends its weak balance on food and services, due to the high prices at a faster rate this year.
And they came up with what we hear in the video up top from Andrew Bailey, governor of the Central Bank of England, which is what was said yesterday for the British television channel Channel 4 TV, that a few hours separated the nation from total financial collapse and destruction as a result of the decisions made by the former prime minister, Liz T.
We had to intervene immediately, and the bank started to buy bonds, spending 19.3 billion pounds, or more than 21 billion dollars, for this reason. Billy: “The markets were fluctuating, which are huge, the most important of which is the government bond market, which affects the pension funds.
As for the analysis of what the bank expects, Ford is that more than 8 million people will face an additional 3000 sterling for the Mortgage installments known Arably as the annual “mortgage installments”, when the validity of their specified contracts expires, while more than two million families will be exposed to immediate damage from their loan Because of the change in interest rates, the real estate had a loan with interest that was fixed at a particular percentage, but it has now been discovered that the percentage climbed at a time when its revenue is lower.
The Bank of England also expected, based on the high interest rates above 5 %, for example, that Britain will face a two -year stagnation, economic activity may reduce approximately 3 %, and the unemployment doubles from 3 % to approximately 6. 5 %, and that sterling will decrease 2 % against the American green currency, Faisal according to Al Arabiya, to $1. 11.
net, which was brought up today, Friday, in connection with a report from the British publication “The Times,” in which the governor was cited as saying that raising the rate was vital to stop inflation from spiralling out of control.
Despite the fact that investors have priced interest rates at a peak of 5. 25%, Governor Billy insisted that the markets and their reliant entities “were exaggerating the high interest rates next year” because they will, in his opinion, be much lower than that amount, while inflation, which reached 10.0%, will be much higher.
From 1% in September to 11% at its highest point By the end of the year, before it decreased “sharply” starting from the summer of next year..
In October, only a few hours separated the British economy from a complete financial collapse.
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