Recession warning: UK economy braces for 'impact' as interest rates rise

Financial analysts also believe another change to the base rate is likely due to the UK’s economy being in the state that it is in.

With the IMF’s latest forecast, concerns look set to continue on whether the country’s financial woes are far from over or just beginning.

Thomas Pugh, an economist at RSM UK, previously broke down what the case was against increasing the base rate.

Mr Pugh said: “The main argument against raising rates again is that there is evidence that the economic resilience at the end of last year hasn’t continued this year. The S&P/CIPS Composite PMI fell to 47.8 in January, a two-year low, indicating that the economy is contracting.


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