Bank of England says UK recession is modest in historical terms and that upturn is probably underway
In testimony to lawmakers, Bailey said the two successive quarters of negative growth recorded in the second half of 2023 — the standard by which the U.K. measures a recession — add up cumulatively to a 0.5% reduction in the country's annual gross domestic product.“If you look at recessions going back to the 1970s, this is the weakest by a long way," he said, adding that the upturn is probably already underway.
Bailey was careful not to offer any assurance that interest rates will be cut soon but indicated that they have probably peaked. Image Courtesy: Reuters.