“UK Headed for Recession if Rates Reach 6%, Economist Says”
June 20, 2023
“Britain could tip into a shallow recession if the Bank of England pushes its benchmark lending rate to 6% as investors expect, an analysis by Bloomberg Economics showed. Gross domestic product would shrink about 0.3% this year and by 1.4% in 2024, according to the research based on BE’s SHOK model. That assumes the central bank delivers 1.5 percentage points of hikes to the benchmark lending rate after the quickest tightening cycle in 40 years…
The UK has so far weathered the cost of living crisis without falling into recession. The growth outlook was even upgraded recently by the International Monetary Fund. But economists now fear the BOE will have no choice but to induce a downturn to curtail inflation…”
https://finance.yahoo.com/news/uk-headed-recession-rates-reach-071334658.html
This article basically told the world banks decide when booms and busts happen. The market doesn’t need help of mega banks to fix itself. Also this gives anyone that is tracking banking, and it’s markets, a leg up on the competition when investing.