Economics

BOE Sees Risk of U.K. Recession With Inflation Above 10%

U.K. central bank raises key rate to highest since 2009
Bond yields and the pound slump after the outlook darkens

WATCH: Bank of England Governor Andrew Bailey says U.K. economic growth is expected to “slow sharply” while inflation will “fall relatively quickly” after it peaks at slightly over 10% in the fourth quarter. Source: Bloomberg

Provide news feedback or report an error

Confidential tip?

Send a tip to our reporters

Site feedback:

Take our Survey

By Philip Aldrick and David Goodman

May 5, 2022 at 11:00 AM UTC

Updated on

May 5, 2022 at 12:46 PM UTC

This article is for subscribers only.

Sign up for the New Economy Daily newsletter, follow us @economics and subscribe to our podcast.

The Bank of England issued the most gloomy outlook of any major central bank this year, warning Britain to brace for double-digit inflation and a prolonged period of stagnation or even recession.