UK Money Supply Stops Growing in Possible Recession Warning
- Money supply economists predicted the surge in UK inflation
- Now they warn of slump and urge BOE to show restraint
A city worker outside the Bank of England headquarters in London.
Photographer: Hollie Adams/BloombergThis article is for subscribers only.
Britain’s broad money supply has stopped growing for the first time in at least 13 years, a reading that will deepen concerns among monetarists urging the Bank of England to show restraint in its battle against inflation.
Economists who predicted the surge in inflation during the pandemic after seeing money-supply growth rocket are now worried that the UK is in danger of recession and deflation.