Barbados and other regional economies are being warned to brace for spillover effects from the hike in interest rates by the Bank of England, and to focus on putting reforms in place to spur productivity, employment and economic growth.Reacting to the news late Thursday evening that the UK’s central bank would hike the interest rate to 1.75 per cent along with predictions of a recession ahead in that economy, leading economists Dr Justin Ram and Marla Dukharan told Barbados TODAY they were not surprised by the move, which would have a far-reaching effect.In a bid to tame soaring inflation rates which have been fueled by a surge in energy prices due to the Russia-Ukraine conflict, the Bank of England’s Monetary Policy Committee voted almost unanimously on Thursday for a half percentage point hike in its key interest rate to 1.75 per cent.
