Bank of England faces backlash over aggressive rate hikes amid recession fears

The Bank of England is being accused of overly tightening monetary policy and risking a deep recession or even depression. Major banks believe it has misjudged global events.

Inflation is expected to drop below the BoE's 2% target soon and stay low through 2024-25, suggesting less need for rate hikes. Yet the BoE is still holding rates at 5.25%.

Falling nominal GDP and business profits signal a concerning economic slowdown. Mass layoffs may follow without urgent BoE rate cuts.

The BoE may be haunted by false fears of 1970s-style wage-price spirals. Inflation appears to be a one-off surge that is now fading.

Britain needs a new economic vision, whether low-tax or pro-investment, to escape this "death trap." The policy status quo is intolerable.