BOE to Deliver Setback for Reeves With ‘Stagflation’ Forecasts
- EY Item Club slashes UK growth outlook and warns on investment
- BOE is expected to cut key rate a quarter-point on Thursday
Rachel Reeves
Photographer: Chris Ratcliffe/BloombergThis article is for subscribers only.
The Bank of England is expected to deal Rachel Reeves a blow this week by downgrading its growth outlook and warning that her October budget will drive up inflation just days after the Chancellor of the Exchequer unveiled a huge package of measures to boost the economy.
While the UK central bank is expected to offer some help by cutting interest rates for a third time since August on Thursday, its new forecasts are likely to reinforce fears that the UK is in the grip of stagflation, according to economists.