Fresh fears have been raised about the health of the global economy after the World Bank warned that efforts to tackle inflation could cause a global recession. Central banks from the US Federal Reserve to the Bank of England are racing to raise interest rates to try to bring surging prices in the economy under control. The annual rate of inflation in the UK is hovering at close to a 40-year high and rate-setters at the Bank of England are widely expected to raise borrowing costs further when they meet next week. – The Times
John Lewis warned staff there may be no annual bonus this year after it crashed to a near-£100million loss. As analysts said it would need a ‘Christmas miracle’ for the payout to go ahead, the retailer said yesterday it was suffering from ‘unprecedented’ cost increases and lower consumer spending. – Daily Mail
Trust in the Bank of England’s abilities to keep inflation under control has slid to a record low. The balance of those satisfied with the Bank’s action on the cost of living crisis sank from -3 per cent to -7 per cent in August, according to its latest Inflation Attitudes Survey. Inflation remained stubbornly high last month. – Daily Mail
The Bank of England has backed Kwasi Kwarteng’s plan to scrap the cap on bankers’ bonuses in a rare public intervention, as ministers plot a bonfire of red tape dubbed “Big Bang 2.0”. Threadneedle Street said it had never supported the cap, which was imposed before Brexit, and added that there are more effective measures to stop excessive risk-taking by bankers. – Daily Telegraph
Almost 80% of the UK’s lowest-paid workers say they are now facing the toughest financial squeeze of their lifetimes, according to new research by the Living Wage Foundation. Liz Truss has averted a further increase in utility bills with her “energy price guarantee” – a radical measure that could cost taxpayers more than £100bn – but many poorer households are already struggling to make ends meet. – Guardian
