Rishi Sunak, Britain's finance minister, said the country was not alone in feeling the effects of rising prices and the aftermath from Russia's invasion of Ukraine. "Countries around the world are seeing slowing growth, and the UK is not immune from these challenges," Sunak said in a statement.
Sunak announced further household assistance in May. Later in 2022, he is likely to accomplish more.Last week, the Organisation for Economic Cooperation and Development predicted that Britain's GDP will grow at zero percent in 2023, the poorest prediction of any Group of 20 (G20) country for the next year, with the exception of sanctions-hit Russia.
The Confederation of British Industry issued a warning on June 13 about stagnation and the possibility of a recession. Despite the slowdown, the Bank of England is set to hike interest rates again on June 16, for the sixth time since December.
Inflation is expected to exceed 10% in the fourth quarter, five times the government's target. The majority of investors and analysts anticipate another quarter-point rate hike this week, bringing the bank rate to 1.25 percent, its highest level since 2009.