The UK is headed for a “mild recession” this year as higher-than-expected inflation and rising interest rates take their toll on household finances, according to Moody’s.
The credit ratings agency said the increase in the UK’s core inflation rate — which does not include food or energy — “raises the odds of further rate hikes.” Moody’s expects at least another 25 basis point hike from the Bank of England this year, taking its base rate to 4.75%.
Read More : UK Faces ‘Mild Recession’ Due to Rate Hikes, Predicts Moody’s