Fears that the Bank of England is driving the UK economy into a deep recession are growing, despite the central bank voting in favour of a more moderate 0.5 percentage point interest rate hike.

This is the stark assessment from Nigel Green, the chief executive and founder of deVere Group, one of the world’s largest independent financial advisory, asset management and fintech organisations.

It follows the Bank on Thursday delivering a half-point increase in the key rate, putting the benchmark at 3.5%.

The deVere CEO says: “The Bank of England’s decision takes interest rates up to the highest level since October 2008 – at a time when the UK is already in recession, and will remain in one for the whole of next year, according to the government’s own analysis.

“The news effectively dashes remaining hopes for a shallower recession.

“The Bank of England seems to be intentionally driving the UK’s consumer-led economy into a deeper recession, putting households and business harder under the cosh, in order to cool inflation.”

He continues: “The rate rise will immediately hit those on variable rate mortgages, while those with fixed-rate mortgages which are soon to expire will be facing higher rates.”

With the UK economy looking increasingly likely to be derailed, Nigel Green suggests that people with exposure to UK financial assets should urgently review and potentially revise their investments in order to protect their money.

He says: “You should take a look at sectors that are likely to be recession-resistant, including food, energy and financial services.”

In addition, in this environment, less familiar, return-enhancing asset classes should also be considered. These might include venture capital, structured products, high-dividend stocks, hedge funds, managed futures and global equity funds.

“The Bank of England decision is another hammer blow for UK households and business and for those with exposure to UK financial assets,” concludes the deVere CEO.