A recession is coming, here is how to prepare your finances

The Bank of England has warned we’re probably already in a recession, and it’s due to be one of the longest in recent memory. Here’s what to expect, and how to prepare your finances.

Shop closing down sale
The Bank of England says the UK will see a recession that could last for much of the next year
(Image credit: © Alamy)

UK inflation hit a 41-year high of 11.1% last November, driven largely by rising energy prices despite the Energy Price Guarantee. The Bank of England (BoE) is forecasting one of the longest recessions in history and has admitted that increasing interest rates could worsen the situation.

But inflation is running at over five times the bank’s 2% target, which means the BoE is likely to continue increasing the base rate over the next few months.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

Nic studied for a BA in journalism at Cardiff University, and has an MA in magazine journalism from City University. She has previously worked for MoneyWeek.