HSBA, AAL, IMB: Stocks you may opt for as recession fears grip UK

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Highlights

  • The UK economy is headed towards recession according to the forecast presented by the Bank of England on 5 May.
  • The inflation level in the UK, which has recently reached a 30-year high of 7% in March, is expected to cross 10% by the end of this year.
  • To counter the impact of inflation, BoE’s MPC has raised the interest rate to 1% on Thursday’s meeting.

 The UK economy is headed towards a recession according to the forecast presented by the Bank of England (BoE) on 5 May. The households are currently facing a cost-of-living crisis, which has significantly squeezed their budgets. Such a tight living crisis hasn’t been witnessed in the UK since the early 1980s.

 

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On Thursday, the BoE has warned that the UK economy may shrink over the course of the next year. In 2023, there might potentially be a contraction of 0.25% in the economy, gradually pushing the UK towards recession.

The inflation level in the UK, which has recently reached a 30-year high of 7% in March, is expected to cross 10% by the end of this year. To counter the impact of this unprecedented level of inflation, the BoE’s Monetary Policy Committee (MPC) has been raising the interest rates consecutively in its past four meetings.


 

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