UK economic outlook ‘very uncertain’, warns Bank of England, as recession fears hit markets –as it happened

This news is property of: The Guardian

Financial Stability Report warns that UK and global economic outlook has ‘deteriorated materially’, as pressure builds on households and businesses.

The economic outlook has “deteriorated materially”, the Bank of England has warned, as pressures including the Russian invasion of Ukraine hit households and families.

In its latest Financial Stability Report, the BoE said:

The Russian invasion of Ukraine could cause more disruption to global energy and food markets. There are also risks from abroad that could indirectly affect the UK.

Risks for borrowers with higher levels of debt will be greater if prices increase faster than expected, growth is weaker than expected or it becomes harder to borrow. In the past we have highlighted that lending to businesses with higher debt burdens, including in the US, could be a particular risk to the UK financial system.

The BoE was confident, though, that UK banks have capacity to weather global uncertainty; they must set aside more capital to weather the economic storm.

In the cost of living squeeze …

The boss of Sainsbury’s warned that the pressure on households will “only intensify” through the rest of this year, as the supermarket pledged to invest £500m in attempting to keep prices low.

Pet food brands Whiskas, Dreamies and Pedigree are caught up in a row over price rises between supplier Mars and supermarket chain Tesco.

Supplies of some of the brands are running low in stores and online in the supermarket chain’s second falling-out with a major supplier in a fortnight.

Source: The Guardian

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