THE GUARDIAN: Analysis: As the Bank of England raises interest rates the message is clear – the 1970s are back
Unemployment rising. Inflation above 10%. Energy prices soaring. Living standards squeezed. The message from the Bank of England was crystal clear: the 1970s are back.
The word stagflation was not to be found in the 100-plus pages of Threadneedle Street’s monetary policy report. Yet a period of weak growth and rapidly rising prices is precisely what the Bank says is in store for the UK. The current post-lockdown bounce will be short-lived and, in a real blast from the past, the economy will be driven into recession to bring inflation under control.
Nor is the pain likely to be over quickly. The economy is expected to contract by 0.25% in 2023 and remain weak in the next two years. Unless things take a marked turn for the better, the next general election will take place against a backdrop of weak growth and lengthening dole queues. » | Larry Elliot, Economics editor | Thursday, May 5, 2022
Bank of England raises interest rates as it warns of recession and 10% inflation: Rise to 1% is fourth successive increase and highest level since February 2009 »
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