S&P Global Ratings has slashed its forecast for UK gross domestic product (GDP) to grow from 4.6% to 3.5% this year, which could have a major impact on British household spending due to rising inflation. “The UK economy has recovered from pre-epidemic (COVIT-19) activity but is now facing a historic leap in inflation,” the rating agency said in a statement on Monday.
And according to the S&P document, the Bank of England (BoE) does not have to do much to combat inflation caused by rising energy prices, but has insisted that interest rate hikes in recent months coincide with a new adjustment in May. , Should help keep inflation expectations from converging.
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