Bloomberg/John Authers/8-4-2022
“CPI inflation is expected to rise more than forecast in the May Report, from 9.4% in June to just over 13% in 2022 Q4, and to remain at very elevated levels throughout much of 2023, before falling to the 2% target two years ahead. GDP growth in the United Kingdom is slowing. The latest rise in gas prices has led to another significant deterioration in the outlook for activity in the United Kingdom and the rest of Europe. The United Kingdom is now projected to enter recession from the fourth quarter of this year. Real household post-tax income is projected to fall sharply in 2022 and 2023, while consumption growth turns negative.” – Bank of England, 8/4/2022
USAGOLD note: Authers says Bank of England governor Andrew Bailey missed his chance to channel his inner Eeyore by greeting journalists at his press conference Thursday with a cheery: “Good morning, if it is a good morning. Which I doubt.” Bailey didn’t, but he did get the message across that times are not good from an economic standpoint in the UK. His message, a part of which is posted above, is a far cry from the tempered approach the Fed has taken and the “nothing-to-worry-about” chorus being sung at the White House.
