Bank of England issues dire forecast for UK: expect more pain and misery

"The Bank of England has said that the health of the UK economy has "deteriorated materially” as it warns it will be harder for families and firms repay or refinance debt.

Banks were told to ramp up capital buffers to ensure they can weather the storm.

"The economic outlook for the UK and globally has deteriorated materially," the Bank said as it published its latest Financial Stability Report, largely blaming the impact of the war in Ukraine.

Households have come under increasing pressure in recent months, as the UK's annual inflation rate hit 9.1% in May.

Households with the lowest income, which spend the largest proportion on tax and essential items, would find it hardest to adjust spending in response to rising prices.

Businesses with higher exposure to energy and fuel prices such as manufacturing and transport could face higher costs, even as falling household real incomes damp demand for discretionary spending. In the medium term, the BoE predicts that this slowing demand will lead to a rise in unemployment."

https://uk.finance.yahoo.com/n....ews/bank-of-england-