From Morningstar:

Bank of England (BoE) governor Andrew Bailey warns UK economy faces major threat from “global shocks” and disruption to oil supplies in Red Sea. Shipping rates have soared, prompting pause of oil shipments by BP, and fortunate gains for select shipping firms. Bailey also highlights potential impact on mortgage costs if shipping traffic continues to be rerouted.

Uncertainty remains a significant threat to the economy, says BoE’s deputy governor for financial stability, Sarah Breeden. Declares the current risk environment as extraordinary due to macroeconomic environment, geopolitical tensions, credit risks and unemployment. Meanwhile, Bailey recognizes that high interest rates have put pressure on UK households, especially those in the rental market, leading to higher rental inflation of around 6%.

By Anna Wise, PA Business Reporter



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