UK businesses cut investment, as the interest rate rises
Senior Executives from the Bank of England suggest that the higher interest rates are denting capital spending, however, are expecting a slight increase in wages. Business leader have commented that as there was an increase in interest their investing has decreased by 8%. Despite this, a 0.5% wage growth is predicted. This is hinting to the BoE having to now tighten their monetary policy in 2023. Moreover, inflation expectations within businesses were unchanged. Post Pandemic the UK economy entered into a recession which resulted in higher interest rates and higher energy prices.
In what ways will the economy be affected as of immediate?