On Thursday, the Bank of England also raised interest rates by the most significant hike in 33 years of 75 basis points.
The BOE warned that the economic downturn is expected to extend well into 2024, with the unemployment rate likely doubling to 6.5% during this time.
The central bank described the outlook for the region as “very challenging,” with “high energy prices and tighter financial conditions weigh on spending,”.
The forecast outlined at the Bank’s Monetary Policy Committee meeting Thursday, describes the economic downturn as the country’s longest recession since the 1920s when reliable record-keeping began.
However, the BOE noted that this may not be the deepest recession the country has faced, but that it is likely to be the longest one seen.
This past Summer, the BOE believed the recession would last till the end of 2023, however, that forecast has now been extended into 2024.
This comes as the U.K. inflation rate hits a 40-year high of 10.1% in September.