On Thursday the Bank of England warned the outlook for the economy is “very challenging” and raised interest rates to 3%, an increase not seen at this level since 1989. According to the central bank, Britain has already entered a recession that may last two years, and inflation is expected to reach nearly 11% in the current quarter, the highest in 40 years. While most tax cuts instituted by recently resigned Prime Minister Liz Truss are being reversed, new Prime Minister Rishi Sunak points to a need for restricted public spending and likely higher taxes.
