Pound in mourning: British recession oppresses the consumer

Pound in mourning: British recession oppresses the consumer With the pound back down to 30-year-old lows, economic troubles in the UK are getting worse. According to the consensus forecast, tomorrow the Bank of England will again raise its key rate by 50 bp. Will it help fight the recession?At the moment, there are several reasons for distrust of the pound: high, practically uncontrollable inflation; negative consequences of the pandemic; the growing energy crisis; nervousness of investors due to the unclear policy of the new prime minister.In the absence of a clear positive trend in almost all economic indicators, a severe recession becomes real in the next quarter. This is also signalled by the fall in the annual growth rate of housing prices in August to 11.5%.Demand for real estate is declining due to increased macroeconomic uncertainty, for example, shares of leading developer Barratt Developments PLC (LON: BDEV) have fallen more than 40% since the beginning of the year. As in the US, further rate hikes by the regulators will certainly affect the lending market, as well as the floating rate mortgage market.It is a positive idea that, unlike in Spain or Italy, the number of mortgage loans with floating rates in the UK does not exceed 10%. According to UK Finance, 96% of borrowers have opted for a fixed-rate loan since 2019.Tomorrow, fans of speculative trading can traditionally catch the momentum on the BOE decision: we believe that the GBP/USD pair will continue to move down, at least to the 1.12 zone, but a drawdown to the level of 1.10 and below is also possible. Do not forget about tight risk control  at these moments, the pound is especially dangerous.Profits to yall!