The Bank of England has issued a stark warning that the UK is heading into a recession, with forecasts described as 'grim' and 'drastic' by national newspapers. The Financial Times reports that Britain faces a much bleaker economic outlook than other developed economies, with households more exposed to energy price hikes than in the US and less protected by government measures than those in the eurozone.
The Times describes the forecasts as 'catastrophic' and says the country is facing the 'worst squeeze on living standards for more than 60 years'. The Daily Telegraph predicts a 'record drop in income' for families, noting that after 12 years of Conservative-led governments, the party's economic record has been 'distinctly underwhelming'.
The Daily Mail warns of a 'ferocious backlash' against the Bank, with critics questioning Governor Andrew Bailey's leadership. The paper's city editor asks whether, 'in choppy seas, the Bank has the right captain'. The i newspaper quotes a leading economist who calls it the 'worst day for the British economy in my lifetime'.
The Daily Mirror highlights that Prime Minister Boris Johnson and Chancellor Nadhim Zahawi are both away on family breaks, concluding there is a 'looming crisis but no-one in charge'. The Metro reports that rising interest rates could add £50 to monthly mortgage payments for those with £200,000 loans, alongside rising food and energy costs.
