The UK economy "very likely" entered a recession in July, the Bank of England says, sparked partly by a banking crisis it calls the "worst since the outbreak of the First World War".
In it quarterly inflation report, the Bank says the downward revision in its inflation outlook is the largest in a single quarter since the Monetary Policy Committee (MPC) was set up. It now predicts inflation will fall to 1% by 2010, way below its 2% target, pointing out the economic landscape “has changed” since its last report in August. "There has been a marked deterioration in the outlook for domestic and global economic activity,” the report reads. “Instability in banking and financial markets intensified to levels not seen for almost a century. “And, in the United Kingdom, offi...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
