UK: Bank warns of more economic risks

The Bank of England’s deputy governor has said the outlook for the UK economy in 2008 has “changed dramatically”.

Rachel Lomax said there was uncertainty over the full impact of “the largest ever peacetime liquidity crisis”.


…The other major economic concern Ms Lomax identified was rising inflation. Higher utility bills are set to push up the Consumer Price Index (CPI) from next month.

“Its implication for policy depends on whether people recognise the temporary nature of the pick-up in inflation,” she said.

BBC