UK prepares for recession amid rising interest rates

Owning a home is getting more expensive as lenders begin putting up mortgage rates, spooked by stubbornly high inflation figures.

The Bank of England is under even more pressure to raise interest rates again in response, possibly as high as five-and-a-half per cent.
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[monkeyboy]

The UK is so far down the toilet it's already polluting rivers.

[gavinkalaher]

Breaking: UK finally prepares to admit they're in recession. It's nothing to do with interest rates, but that's our narrative.

[joegaffney]

If the house prices where not artificially kept high for so many decades it wouldn't be that much of an issue.

[donaldduck]

This goes back to the 1980s, if not earlier, the UK has become a service industry, shopping, banking, debt whilst science/engineering has been under valued, under invested in and run into the ground. Our economy worked when we could import cheap products from China/ Taiwan etc but now these countries are becoming more wealthy and hence the cost of imported good is increasing. Also the flood of cheap highly skilled workers from Eastern Europe and further afield is drying up as wages are so low in the UK compared to the US and EU. Hunt and Sunak are just bean counters, office clerks promoted above their intellectual capacities, excel gurus, they don’t have the vision to understand or see the desperate situation this country is in, we will simply stumble into a massive recession, unemployment will skyrocket and interest rates will continue to rise for years, this will take generations to fix.

[AddilynTuffin]

The thing to me is, if you invest and have other income outside of dividends then you will be able to live off dividends without selling. Which means you can pass that on to your kids which will give them a leg up in life. $52k dividends received in 2022.

[GillerHeston]

It is a government inspired crisis this time. The Treasury have to sell Bonds to cover the trade imbalance and the government spending imbalance. In order to sell them they have to raise interest rates and the old long-term, low risk, low interest, AAA investments (including Treasury Bonds), held by the banks (often due to government regulatory policy), become next to worthless. The next milestone is the 15th when the government issue a new batch of Bonds. I have approximately 350k stagnant in my portfolio that needs growth. What is the best way to take advantage of this downturn?

[TheBlokeNextDoorMusic]

Stop calling it a wage-price spiral. It's a price-wage spiral, the price increases came first.

[arnedomi]

Why not mention the possibility of curving inflation by raising taxes for the rich and the very rich?

[Natalieneptune]

I used to think every investor lose out during recession, meanwhile some make millions. I also thought everybody went out of business during the Great Depression, but some went into business. Bottom line, there's always depression for some, and profit for others, it all starts from having the right mindset. That said, I've set asides $250k to invest for future, unfortunately I'm a complete noob.

[MaryamofShomal]

*5.5%?!* 😱😱😱

BRO WTF HAVE THE TORIES DONE TO Y’ALL THESE LAST 13 YEARS?!?!!

[fferrando]

There is no wage spiral, what we have worldwide is a profit spiral. Companies are having record profits but their taxes are very low, if not inexistent. It's always easy to blame the weakest link. No chain is stronger than its weakest link.

[WhichDoctor]

interesting how the bank is telling us that working people need to accept getting poorer and actively squeezing our finances further. Yet says nothing about record profits across the private sector and rapidly increasing spending on luxuries by the super-rich whose wealth is still ballooning. It's always them who get the cream in the goods time while we get barely above inflation pay rises and are told to be grateful. Then in the bad times we have to accept not being able to afford food and heating while the rich continue getting richer

[davidvestey]

Telling the truth about Brexit, no wonder Dorries wants to shut down channel 4

[SK-vgmw]

Halving inflation from 20% to 10%, sounds so reassuring!

[maneshipocrates]

Tory economics 101: studied at Eton and Oxford and practiced on folks.

[selenajack]

With inflation running at a four-decade high, Recession is now the ‘most likely’ outcome for the economy and i cannot imagine being a victim of circumstances. My portfolio suffered a big hit, holding it further won’t be any good. I've heard of people netting hundreds of thousands this red season. How can i ensure this?

[DPK]

First visit back to the uk since 2008 and it was depressing. Manchester was run down, roads full of potholes, shopping strips empty or full of charity shops London was a ripoff (always was), Nottingham was depressing and people generally miserable. Yet they still still talk about how much their houses are worth

[poltronafrau]

Why don’t they talk about the cause of this recession: corporate greed.

[Jack-rlkk]

Yet there are still working class citizens who still support and vote conservative, incredibly disappointing

[jayjay-zbzg]

JEREMY KUNT JUST CANT STOP SMILING IN INTERVIEWS LOOOOL