The Bank of England believes the country may already be in recession, and the economic outlook is expected to get worse before it gets better, as high energy prices push households to curtail their spending.“We need a credible plan to ensure that government debt can be expected to fall over the medium-term.”Although one top Bank of England official indicated this week that investors may be pricing in too many interest rate hikes, the central bank is expected to remain tough in the near-term in its campaign to get prices under control.The picture of the United Kingdom’s financial position also darkened with the release of fresh data on Friday showing that Britain’s government borrowed £20 billion ($22 billion) in September, £5.2 billion ($5.7 billion) more than the country’s fiscal watchdog had expected.“The weakness in retail sales and overshoot of the Office for Budget Responsibility’s March public borrowing forecast won’t make the next Prime Minister’s task any easier in navigating the economy through the cost of living crisis, cost of borrowing crisis and the cost of credibility crisis,” Ruth Gregory, senior UK economist at Capital Economics, said in a note to clients.On Monday, Hunt — just days into the job himself — announced the rollback of almost all tax cuts in Truss’ original “growth plan,” which had been rejected by investors."