UK Economy Faces Double Threat of Inflation Surge, Recession Risk

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Britain's economy is struggling under the strain of two major risks in the form of double-digit inflation and a possible recession, leaving the Bank of England in a dilemma about how much further it should raise interest rates, Reuters reported. The BoE has raised borrowing costs five times since December and its next scheduled rates announcement is on Aug. 4. The central bank has said that it will act "forcefully" - in other words, increase rates more steeply - if inflation pressures turn more persistent. But it also expects almost no economic growth over the next three years. Read more.