Bank of England says UK recession is modest in historical terms and that upturn is probably underway

By PAN PYLAS
Associated Press

Bank of England Gov. Andrew Bailey says the U.K.’s economic recession, which was confirmed last week, is modest by historical standards and is probably over. In testimony to lawmakers, Bailey  said the two successive quarters of negative growth recorded in the second half of 2023 — the standard by which the U.K. measures a recession — add up cumulatively to a 0.5% reduction in the country’s annual gross domestic product. That is the weakest “by a long way” since the 1970s, he said. Bailey was also careful not to offer any assurance that interest rates will be cut soon but indicated that they have probably peaked.