Interest rates are also set to increase and the UK GDP will fall, according to the Centre for Economics and Business Research [CEBR]. Their report looked into the possible impact of the Russian invasion of Ukraine on the UK economy.

The Bank of England interest rate is set to average 0.7 percent for the rest of 2022 and 1 percent for 2023 before then moving up to 1.25 percent.

According to the CEBR, the Bank of England “traditionally does not try to respond to one-off shocks”.

“In fact we expect that in the new environment there would be less tightening than we had previously calculated.”

The CEBR described the impact of the war on GDP as “dramatic”, due to the rise in the price of commodities and a reduction in exports globally due to economic sanctions on Russia.

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