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MPs quiz Bank of England on likelihood of UK recession

12 May 2022

The Treasury Committee will question senior figures from the Bank of England (BoE), including Governor Andrew Bailey, at 3:15pm on Monday 16 May.

The BoE is forecasting a sharp slowdown in UK growth in the latter part of 2022. Following its May 2022 Monetary Policy Report, where the Bank increased interest rates to one percent, MPs are likely to seek witnesses’ views on the probability of the UK facing a recession this year or next.

The Committee is likely to explore whether the BoE’s recent decision to increase interest rates contributed to the worsening of the economic outlook for the UK, as well as rises in the cost of living.

The BoE has recently made significant alterations to its inflation forecasts, predicting that inflation will hit 10 percent this year. MPs could discuss the likelihood of further increases in inflation, as well as how global factors such as the war in Ukraine and domestic pressures such as a tight labour market are impacting on inflation prospects in the UK.

Witnesses’ views are also likely to be sought on the impacts of rising prices in energy and tradable goods, the impact of interest rate increases on mortgage costs and house prices, how consumers are likely to respond to the cost of living crisis, and the resulting outlook for business investment.

Witnesses

Monday 16 May

3:15pm

  • Andrew Bailey, Governor, Bank of England
  • Sir Dave Ramsden, Deputy Governor, Markets and Banking, Bank of England
  • Jonathan Haskel, External Member, Bank of England Monetary Policy Committee
  • Michael Saunders, External Member, Bank of England Monetary Policy Committee

Further information

Image: PA