GDP falls for second consecutive quarter UK economy slips into technical recession. High inflation remains the biggest obstacle to UK economic growth.
The Bank of England must strike a balance between the need to slow down price increases and the risk of damaging the economy by maintaining high interest rates. Failure to cut interest rates soon may exacerbate the economic recession. The UK also lags behind other advanced economies in reducing inflation, with US and Eurozone rates at 3.1 and 2.4% respectively over the period.