Bank of England's Bailey Warns Global Economic Outlook Has ‘Deteriorated Materially'

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Bank of England's Bailey Warns Global Economic Outlook Has ‘Deteriorated Materially'
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The governor of the Bank of England said Tuesday that the global economic outlook has “deteriorated materially” and warned of possible further shocks to come.

"It is the right time to lock in resilience so that we are well prepared for future possible shocks," he added.Tuesday, in which it outlined a number of risks to the U.K.'s economic outlook. Those include ongoing disruption to food and energy markets as a result of the war, high household and government debt, as well as the continued impacts of Covid-19 in China.

"These higher prices, weaker growth and tighter financing conditions will make it harder for households and businesses to repay or refinance debt," he said. Bailey said the Bank's Financial Policy Committee would be willing to continue readjusting the rate as needed. Bailey also said the BOE would move ahead with its annual stress test in September, evaluating the U.K. banking system's ability to handle various potential risks, including higher interest rates, asset price falls and"deep" recessions.

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