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The Guardian - UK
The Guardian - UK
Business
Phillip Inman and Julia Kollewe

Bank of England risks recession with interest rate rises, Mervyn King says

Mervyn King wearing a blue suit
Mervyn King said the signals from the credit market indicated that inflation was about to drop sharply. Photograph: Amer Ghazzal/Shutterstock

The Bank of England could plunge the UK into a recession by raising rates too far, the former governor Mervyn King has said.

In a broadside a fortnight before Bank officials are due to meet to decide the next step for interest rates, Lord King said the signals from the credit markets in 2021 that indicated inflation was about to rocket were now showing that price growth was about to drop sharply.

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