Household disposable incomes will be squeezed for the next two years, the Bank of England has warned as inflation heads towards 7.25 per cent in April – the highest level since the early 1990s.
The central bank raised its key interest rate to 0.5 per cent on Thursday and trimmed its GDP forecast for 2022 to 3.75 per cent, down from the projected 5.0 per cent. This is despite a relatively rapid recovery from the impact of the Omicron variant of Covid-19.
