Wednesday 29 June 2022 11:03 PM UK suffering harsher downturn than other countries and it could last longer, ... trends now

View
comments

Britain is suffering a sharper economic slowdown than other rich countries and inflation looks set to last longer than elsewhere, the governor of the Bank of England has warned.

In a bleak assessment, Andrew Bailey said the economy was at a ‘turning point’ following its post-Covid recovery as it is battered by a ‘very large national real income shock’.

And he said the Bank stood ready to hike interest rates more aggressively as it battles to get inflation under control.

The Bank is tasked with keeping inflation at 2 per cent but prices are now 9.1 per cent higher than a year ago – the biggest increase for 40 years.