Bank of England Decision Due: Another 50-Bp Rate Hike or 25-Bp?

The video discusses the potential for rate hikes by the Bank of England (BOE), considering factors like high wage growth and inflation. It explores the possibility of a 25 basis points increase due to declining CPI and economic weakening, but also considers a 50 basis points hike due to wage growth and inflation composition. The impact of new MPC member Megan Greene on vote dynamics is analyzed, with her hawkish stance potentially influencing decisions. Updated forecasts suggest a high rate path, with a peak of 6%, raising concerns about a recession, though it may not be deep by historical standards.

Discuss the significance of the MPC's vote split and its potential impact on future rate decisions.

What are the implications of a potential recession in the UK economy?