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The Guardian - UK
The Guardian - UK
Business
Richard Partington and Heather Stewart

‘Stagflation’ fears as Bank of England cuts growth forecast and warns of price rises

Reeves in a hi-vis jacket speaking to a man in a hi-vis
Rachel Reeves visiting a manufacturing facility in Driffield, East Yorkshire, in January. Photograph: Ian Forsyth/Reuters

Rachel Reeves’s plans for growth suffered a double blow after the Bank of England halved its forecast for the year and warned households would face mounting pressure from rising prices.

In a downbeat assessment as it cut interest rates for a third time in six months, Threadneedle Street warned people would face a fresh squeeze on living standards from rising inflation even as the economy stalled.

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