Economics
Ukraine War Will Upend U.K. Economic Outlook, Two BOE Policy Makers Say
- Cunliffe says Russian invasion may spur move from risky assets
- Tenreyro says inflation headed higher with ‘upside surprises’
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Two Bank of England policy makers warned that the fallout from the attack on Ukraine will upend the outlook for the U.K. economy, which had started to recover from the coronavirus pandemic.
Deputy Governor Jon Cunliffe said the war may hurt growth, spurring a drop in the value of the most risky assets and raising the level of uncertainty. Policy maker Silvana Tenreyro said she expects “upside surprises on inflation,” which will deliver a shock to the terms of trade.